HMRC PAYE Inspection

HM Revenue & Customs seeks to concentrate its compliance resources and activity in areas where it considers tax is being lost and has increased the nature and scope of “PAYE Audits”. To maximise results and ensure value for money HM Revenue & Customs are now even more selective in the areas and trades selected for review as well as undertaking randomly selected visits.

If HM Revenue & Customs find errors during a PAYE review they have the power to go back 6 years and assess the employer on the income tax and national insurance underpaid plus interest and penalties. If HM Revenue & Customs do not find any errors during their visit which covers the 12 months preceding the letter of notification of a visit, they cannot look and go back 6 years.

It is important, therefore, that employers have robust systems in place to ensure correct treatment of payroll items and benefits in kind.

Paul Chappell, our Senior Tax Investigations Manager, has recently joined the firm from HM Revenue & Customs where he was the manager of an Employer Compliance unit responsible for all PAYE visits undertaken by the Grimsby and Lincoln offices. Paul has a wealth of experience and is acutely aware of the areas HM Revenue & Customs are currently targeting.

If you are concerned about any of the three issues raised here or any other payroll issue and feel you would benefit from a PAYE Healthcheck and would like to arrange for a visit please contact Paul at our Grimsby office on 01472 350601 or alternatively e-mail p.chappell@forrester-boyd.co.uk

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