PAYE Investigation

Key Aspects of PAYE Investigations

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1. Visit to Business Premises:

   • HMRC officers visit the business premises to review records.

   • They interview those who operate the PAYE system to ensure correct handling of PAYE.

2. Areas of Focus:

   • Payment of wages and salaries.

   • Recording and reporting of expenses and benefits.

   • Status enquiries to check if self-employed individuals should be employees.

   • Review of redundancy payments and the Construction Industry Scheme.

   • Handling of employees brought in from or sent to other countries temporarily.

3. Cross-Departmental Information Sharing:

   • Information gathered may be shared with other HMRC departments, potentially triggering VAT, income tax, or corporation tax investigations.

4. Computerised Payroll Systems:

   • HMRC reviews the accuracy of data input into payroll systems.

   • Mistakes can occur due to the inexperience of employees inputting the data.

5. Real Time Information (RTI):

   • Since 6 April 2013, employers must operate RTI, and HMRC will ensure compliance.

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How We Can Help

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1. Expert Assistance:

2. Our team includes ex-HMRC PAYE inspectors with deep expertise in PAYE investigations.

3. We can address HMRC’s questions regarding PAYE operations in your business.

4. Error Containment and Negotiation:

5. We help contain the consequences of any PAYE errors found.

6. We negotiate additional tax liabilities proposed by HMRC to minimize financial impact.

7. Complex PAYE Areas:

8. Many PAYE aspects are complex, and errors can lead to significant backdated tax and NIC liabilities, along with interest and penalties.

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If HMRC is planning a PAYE investigation into your business, or has already started one, contact us for a free, confidential, and no-obligation discussion. We offer an initial free-of-charge meeting for prospective clients.