PAYE71030 | PAYE operation: aspects of PAYE operation - employee: directors of companies in liquidation

Liquidation cannot normally be completed until the employer's PAYE liability to the date of the winding up order has been agreed. Therefore, give prompt attention at every stage to cases involving directors of companies in liquidation.

When you receive notification of a company liquidation, review each director’s record at once. Take the following action

• Notify the liquidator on the lines of the letter in subject ‘Insolvency of employer’ PAYE21130

• Inform the Insolvency Claims Handling Unit (ICHU), Newcastle of any failures by the company to operate PAYE on directors' earnings

• If the PAYE income is dealt with elsewhere

• Ask whether there has been any unresolved PAYE failure

• Ask for any PAYE failure to be reported to the ICHU