The playgroup in question had not established that one of its employees also worked elsewhere. According to the Inland Revenue, when this is the case, the employer may be responsible for deducting income tax from the employee at basic rate and may be held liable for any tax owed if this is not done.
Scottish Pre-School Play Association finance manager Ann Motherwell said, 'The playgroup was found responsible for paying the tax which was owed and had to foot a bill of 800, which could close some groups. However, the people involved in the group and the friends of the group rallied round - though that wouldn't always happen.'
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