This Section provides for the Secretary of State to withdraw a notice of underpayment that is incorrect in some way and makes provision for situations where a replacement notice of underpayment is not issued.
	Subsection (1) provides that the Secretary of State may issue a notice of withdrawal if it appears to them that a notice of underpayment is incorrect (and that notice has not already been withdrawn or cancelled).
	Subsection (2)(a) provides that where a notice of underpayment is withdrawn and no replacement notice of underpayment is given under Section 112, any penalty that has been paid by or recovered from the person in accordance with the original notice must be repaid to them. This repayment should include interest at an appropriate rate for the period starting from the point at which the penalty was recovered. Subsection (2) (b) provides that any appeal against the withdrawn notice must be dismissed.
	Subsection (3) states that "the appropriate rate" at which interest should be paid under subsection (2)(a) means the rate that was specified in section 17 of the Judgments Act 1838 on the date the sum was paid or recovered.
	Subsection (4) sets out that a notice of withdrawal issued in circumstances where subsection (2) applies must indicate the effect of subsection (2). However, a failure to do so does not make the withdrawal ineffective.
Part 5: Enforcement of Labour Market Legislation Notice of Underpayment Section 111 – Withdrawal of notice of underpayment