Are you or your company undergoing a PAYE tax investigation by HMRC?
Our team of experts at Churchill Tax Investigation can help with and facilitate any type of PAYE tax investigation.
HMRC will conduct investigations into businesses who employ people. The purpose of these investigations is to determine whether PAYE is being managed correctly. If you have been notified of an upcoming PAYE investigation it is important to know what to expect and how to manage it effectively.
During the PAYE investigation, a member of the investigating team from HMRC will visit your business and closely consult your records and business books. Usually there will be two representatives from HMRC. As well as reviewing the records, HMRC will also speak with those who are responsible for managing PAYE systems and processes to find out exactly how it functions and whether the right procedures are followed.
HMRC will review the usual methods of payment in relation to wages and salaries in addition to reviewing how benefits and expenses are reported and recorded and whether individuals who are treated as being self employed should have been on the payroll. They will also review less frequent payments such as any redundancy settlements. If applicable, HMRC will also review Construction Industry Scheme arrangements and explore how the business deals with contractors.
The investigation will begin with a thorough evaluation of the company's most recent records, with a specific focus on any cash transactions. This investigation will lead to opportunities to obtain information which may prove beneficial for other departments within HMRC. It is not unheard of for a PAYE investigation to lead into other tax investigations such as those relating to VAT, Personal Tax or Company Taxation. The majority of businesses now use computerised systems to deal with processing payroll including weekly or monthly payment runs or to manage payments and benefits. As a result this can lead to errors or mistakes which can cause problems during PAYE investigations.
The PAYE system is complicated and if HMRC discover any mistakes or errors in the way in which PAYE is managed, then they will pursue a course of action to recover underpaid National Insurance Contributions and/or tax. Where errors are found, they may even investigate historical records over several years. Businesses are also liable for penalties and interest on this tax.
Churchill Tax Investigations have Ex- HMRC inspectors who can guide you through the process. Using their knowledge of the investigation, they can answer all of the questions from HMRC which relate to the way in which PAYE is managed and we will try to reduce the consequences of any errors found during the process. Furthermore, we will also enter into any negotiations with HMRC to reduce additional tax liabilities where possible.
A PAYE investigation is something unknown to many businesses who have never faced one before. Our team will discuss the process with you, advise what records and information HMRC will need to access and deal with HMRC on your behalf if you decide to instruct us. If HMRC have notified your business that they intend to conduct a PAYE investigation, or they have already started a review, it is important that you seek the appropriate advice as quickly as possible. To discuss your requirements in more detail please contact our team today who will guide you through the entire process.