In which situation can HMRC stop an employer from making PAYE payments?

The correct option reflects a critical situation that arises when an employer has large outstanding debts related to PAYE (Pay As You Earn) and National Insurance Contributions (NIC). When an employer has significant unpaid amounts due to HMRevenue and Customs (HMRC), it indicates non-compliance with tax obligations. In such cases, HMRC has the authority to intervene and stop the employer from making further PAYE payments until the outstanding debts are addressed.

This significant measure is intended to ensure tax compliance and protect government revenue. By halting payments, HMRC can compel the employer to prioritize settling their debts, as it reflects a serious issue that needs resolution. Addressing outstanding debts is crucial for maintaining the integrity of the PAYE system and ensuring that the tax owed is collected promptly.

In contrast, the other scenarios do not trigger HMRC's authority to stop PAYE payments. Consistent profits may actually indicate a healthy business capable of meeting its tax obligations, and regular payment compliance demonstrates a commitment to timely submissions. The presence of multiple branches, by itself, does not constitute a reason for HMRC to intervene with PAYE payments.