Tax Settlement Agreement

Sram

anselld wrote: »

I have to disagree with the previous poster. As a general rule individuals are liable to pay the correct tax. If HMRC dispute the tax treatment they will be after you for the tax in the first instance.

I don't think aveylee was referring to the actual tax owed by the employee. I would expect HMRC to come to me first if my tax was underpaid. Just like if it was overpaid they would send me the rebate rather than give it to my employer.

My concern is more relating to any associated fines, penalties, interest and liabilities the employer may have incurred should it turn out that the correct tax was not paid.

I believe HMRC would go after the employer for those as legally I believe they are the employers responsibility. And then it would be down to the employer to enforce the indemnity where the employee agreed to pay them. However I would not expect HMRC to get caught up in that.