[DMBM700085] Set-offs – S130 FA2008: set-off in specific direct tax situations – PAYE
Employers deduct tax, National Insurance Contributions and student loans from their employees and contractors deduct (CIS) tax from their subcontractors. They should pay this to HMRC monthly, quarterly or exceptionally annually. Where they don't do this, DMB has to establish a debt to be able to recover that through enforcement proceedings where necessary.
A debt is established in one of four ways:
•by the issue of form P101
•from a quantification of the employer/contractor wages records
•by the employer/contractor providing details of their deductions
•from employer annual returns and contractor monthly returns.