HMRC actively use routine compliance visits to check PAYE, National Insurance, VAT, minimum wage and general books and records, so they can identify errors and collect additional tax.

So why not find out any risk areas first and have the opportunity to put the right, before HMRC do?

We offer a ‘test run’ where we can look at all the things HMRC do, and ask the questions they would ask, looking for errors or mistakes that you may have missed.  This gives you the time to consider the impact of HMRC finding them, and if appropriate allowing you to rectify them, or be ready to point them out to HMRC is a visit takes place.  Sometimes a voluntary disclosure following a thorough review by a professional can reduce the amount that HMRC look.

Sometimes this review can also identify opportunities that you may be missing out on.

If any errors are identified by HMRC, then there is a risk of additional tax, interest and penalties being raised.

A PAYE test run can consider:

For example, PAYE test run can consider:

  • Accuracy of PAYE calculations & reporting
  • Reconciliation of records to returns made
  • Correct management and reporting of cash payments / expenses
  • Compliance with subcontractor rules (IR35 / whether contractors should be treated as employed or self-employed for tax purposes).
  • Compliance with P11D and the taxation of benefits provided
  • Income and remuneration, reviewing dividend minutes and vouchers
  • Compliance with the National Minimum Wage legislation

 

The test run can provide a schedule of risks, errors and opportunities identified, and proposals for any action required.

 

If you do get a visit, our team can help to manage the enquiry, explain what we reviewed, what we found and any action taken.  This will often reduce the level of work the inspector looks to do, as they have the confidence that we have had a look already.

It is important to know that even genuine and reasonable errors and mistakes can give rise to penalties and interest, and on some areas lead to negative publicity from HMRC’s approach to ‘name and shame’ offenders. 

Most businesses will see some form of HMRC review every 5 or 6 years, but some may be more frequent where previous issues or unusual transactions are identified.