Employer Compliance Reviews
Employer Compliance Reviews (formerly known as PAYE investigations) are the most common form of HMRC enquiry. They are carried out by HMRC to ensure that employers and contractors are meeting all of their obligations in relation to their employees and subcontractors with regard to tax and NIC.
Generally a review of all the prime records of the business is undertaken and key personnel are interviewed. For this reason HMRC usually asks for the review to take place at the business premises.
Employer Compliance Reviews usually cover (inter alia) the following areas:
- operation of PAYE and NIC;
- operation of payments to subcontractors under CIS;
- the employment status of workers (employed v self-employed);
- the operation of IR35;
- Forms P11D – the reporting of benefits-in-kind;
- entertainment expenses;
- travel expenses;
- salary sacrifice;
- share schemes;
- termination payments.
How can we help?
We can undertake a pre-emptive review of your business to determine areas where additional tax or NIC may be due, and can advise on ways to reduce the risk of non-compliance.
We can also assist when HMRC are conducting an Employer Compliance Review; managing the process to ensure that the scope of the review is not extended to records and returns which have no bearing on wages or benefits, that the amount of additional duty being levied is correct and to negotiate with HMRC in relation to the level of penalty imposed.
Read more about our Tax Investigations expertise.