PAYE Investigations

Grounds for a PAYE & NIC Investigations

Although these investigations can be completely random, they are often triggered by late or inaccurate filing of P11Ds and P35 forms. If HMRC suspect serious under payments of tax they will also look at PAYE and NIC.

In the first instance, an HMRC employer compliance officer will give you a 'friendly' phone call requesting a meeting at your offices.

Our best advice - CALL US IMMEDIATELY.

Our tax advisor will know exactly how to respond to probing and difficult questions by HMRC and will not say anything that will arouse suspicion and lead to the investigation spinning out of control.

The following can be checked during the visit

• PAYE calculations for completeness and accuracy
• Correct use of employee codes
• Reconciliation of the records with the P35
• Correct treatment of new employees and leavers (P46 procedures)
• Cash payments where PAYE has not been operated
• Compliance with sub-contractors’ rules
• Compliance with NIC regulations
• Expense payments, employee benefits, correct disclosure on P11D or P9D
• Compliance with terms of any dispensation
• IR35 policy and practice

When HMRC are requesting to see contracts, they probably have information that fraud has been committed and they are launching a full IR35 review. You will need our tax investigation expert to prepare a full and robust defence on your behalf.

The following will all fall under particular scrutiny

• Private petrol and car allowances and mileage
• Home telephone and internet
• Entertainment expenses
• Expenses for use of home as an office
• Work undertaken at an employee’s home
• Casual labour & payments to ‘self employed’ persons
• Lump sum expenses
• Goods and services provided free or below market value
• Meal expenses and lunches
• Clothing & accommodation

What happens after the inspection?

There will always be some level of discrepancy no matter how careful you have been. if you haven't been that careful you could find your self owing a considerable sum. The tax man will look at the discrepancies calculated for that year, and them assume the same discrepancies have happened for the previous 6 years. You will be assessed on the basis of 7 years in total.If they suspect wilful fraud and concealment they can extend the number of years of assessment.

You will be assessed for back tax, interest and penalties. These tax penalties depend level of fraud and concealment, and, the cooperation you gave during the investigation. In serious cases penalties can be as much as 100% of the tax owed, rising to 200% if offshore facilities are involved.

Our clients say we are worth our weight in gold

We can conduct a dummy PAYE audit to identify and fix potential problems before the tax man comes to visit. Our tax investigation specialist will establish the direction a PAYE tax investigation and handle any difficulties presented by HMRC.

• All contact with HMRC is through us
• We negotiate HMRC technical challenges with ease
• We can liaise with your solicitor and accountants
• We will keep updated at every turn
• We will fight your corner and make sure you pay only what is due
• We will take away the stress and worry, allowing you to sleep at night

Without exception, when the taxman comes knocking, he wants to recover tax and VAT. In serious cases, he will pursue a criminal tax investigation with the aim of putting you in jail.

We save individuals and companies literally tens of thousands of pounds - a fraction of the fees that we charge. In many cases, we have saved individuals from criminal proceedings.

PAYE tax investigations have a habit of spiraling out of control, eventually spreading to  VAT, Corporation Tax and Income Tax. You need us on your side to prevent this from happening.

Call our dedicated tax investigation expert NOW

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