PAYE Investigations

PAYE investigations, also known as an Employer Compliance Reviews are undertaken by HMRC officers to ensure that employers and also contractors in the construction industry are complying with all their obligations for taxes (PAYE and Construction Industry Scheme – CIS) and National Insurance Contributions (NIC).

PAYE Investigations

Ordinarily, HMRC will wish to undertake the review of business records at the place of business, to enable them to understand the business and to interview key members of staff, as well as looking at the records.

An Employer Compliance Review will focus on the following areas.

  • operation of PAYE and NIC
  • operation of payments to subcontractors under CIS
  • the reporting of benefits in kind on forms P11D
  • the status of workers
  • the correct treatment of entertainment expenses
  • the operation of IR35
  • termination payments
  • travel expenses
  • vans
  • expats and inpats
  • salary sacrifice

Where HMRC establishes an underpayment of PAYE, NIC, or CIS tax they will firstly seek to recover this from the employer / contractor. HMRC may also seek to recover any underpayment from an employee or a subcontractor.

For more information and to arrange a free initial consultation please contact Doug Sinclair.

ICAEW IGAL The Association of Practising Accountants

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