The sole director of a small Ltd company sacked an employee for "lying about having Multiple Sclerosis", and refused to pay £400 SSP outstanding at the time of the sacking.
The Inland Revenue's statutory payments team investigated, ruled that the employee was genuinely ill, was entitled to the SSP, and formally directed that the company pay the £400.
The director refused to accept the formal decision, and three months later the Inland Revenue paid the £400 directly to the employee, judging the director to be a "Defaulting Employer".
Out of morbid curiosity, what are the consequences for the Company and Director of being labelled "Defaulting"? Is it really not a Good Idea to upset the tax man that way?
thanks