PAYE compliance review audit checklist
If you receive a letter telling you that HMRC wants to carry out a compliance review of your payroll records, use our checklist in advance of HMRC’s visit to review your records so that there are no surprises on the day.
Prepare for a visit
HMRC has a legal right to inspect your payroll records to confirm that you are paying the correct amount of tax and NI. It sees these visits as a chance to make some easy money. Most PAYE inspections result in some mistakes being found and HMRC will often calculate the “lost” tax and NI over a period of four years plus the current year. This period may even be extended if it suspects that tax has been withheld on purpose. It may also seek penalties, although these will normally depend on the size of the error and how much the employer co-operates. Use the PAYE Compliance Review Checklist to help prepare for an impending visit.
Related Topics
-
How long does a capital loss last?
You’ve made a large capital gain from a recent sale. Capital losses can reduce the amount on which you have to pay tax but the losses you have date back decades and weren’t reported to HMRC. Is it too late to claim tax relief for them?
-
Salary transparency on recruitment
A pay transparency survey has revealed that 70% of employers intend to share salary ranges with external candidates during recruitment ahead of the EU Pay Transparency Directive coming into force. Will this become a legal requirement?
-
HMRC has recently expanded the scope of taxpayers who can arrange a payment plan online. What are the new parameters and conditions?
HMRC has recently expanded the scope of taxpayers who can arrange a payment plan online. What are the new parameters and conditions?