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PAYE Healthcheck

Worried about a PAYE Inspection?

PAYE has become ever-increasing in the complexity of legislation affecting employers, leading to a significant increase in employer compliance visits by HMRC.

This has resulted in a corresponding rise in penalties charged for non-compliance as companies fail to keep up with the changes; payroll now includes much more than the deduction and paying of tax and national insurance.

Recent changes to legislation affecting employers have included, but are not limited to, the deduction of student loans, the EC Working Time Directive and consideration of National Minimum Wage (NMW) and National Living Wage (NLW).

In recent months, it has become evident that HMRC is targeting employers who are using off-payroll workers including the issue of letters which questions the status of workers.

HMRC doesn’t discriminate. Any of your clients, no matter what the size of the business, could find themselves subject to scrutiny and face the stress and anxiety of dealing with a visit from HMRC. The first notification your client will have of this will be a letter headed ‘Check of Employer Records’.

Our PAYE Health Check service is designed to find any PAYE issues before HMRC comes knocking.

The health check can:

  • Review and sample check your payroll records for errors
  • Sample test the most common errors that the PAYE inspectors look for
  • Statistically analyse your completed PAYE returns
  • Sample check the completion of PAYE returns
  • Compare your PAYE returns against your annual accounts
  • Sample check leavers and starters to make sure they are correctly dealt with
  • Review statutory maternity pay, statutory sick pay, student loan deductions and working tax credits
  • Identify any workers where status issues may be a concern
  • Check completion of the end of year returns
  • Review benefit in kind and expenses disclosures and calculations
  • Check expenses dispensations
  • Identify any PAYE planning opportunities.

We can also provide a similar service in respect of a CIS health check for the construction industry.

Next Step:

Please contact us if you need further advice, have any questions about our services, or would like a free consultation or a fixed quote.

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