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HMRC Employer Compliance Review

An Employer Compliance Review, also known as a PAYE investigation, is conducted by HM Revenue & Customs (HMRC) officers who want to ensure that employers and contractors are meeting all of their tax, National Insurance (NIC) and Construction Industry Scheme (CIS) obligations in relation to their employees and subcontractors.

Historically, a PAYE investigation was undertaken by reference to HMRC’s Code of Practice 3 – A Review of Employers & Contractors records. This has now been replaced with a series of Factsheets (EC/FS1 – EC/FS5).

Usually the PAYE investigation is conducted at the employer’s premises, firstly to enable a discussion to be held with key personnel within the company and secondly to undertake a review of all the prime records.

The areas which HMRC often consider as part of the Employer Compliance Review are as follows:

  • 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.

To the extent that HMRC establish a liability to tax or NIC, the amount owing will also include interest on any late duties and potentially a monetary penalty based on a percentage of the tax and/or NIC due. 

Why should you contact us?

We have a dedicated team including former tax inspectors, who have a significant amount of experience in handling and resolving HM Revenue & Customs employer compliance reviews on behalf of our clients. 

 


 

David Daly

Head of National Employers' Advisory Team 

David has been involved in employment taxation for more than 35 years. He specialises in remuneration planning, devising and implementing employee share incentive schemes and advising on salary sacrifice arrangements. More   

 

Steve Livingston

Partner 

Steve is the Tax Partner in our Manchester office. Steve's main focus is on providing timely and proactive tax advice to companies and Directors throughout their business lifecycle with an emphasis on share based reward. More 

Susan Ball

Director 

Susan has over 20 years experience working extensively in the employment tax, investigations and reward field. She deals with all aspects reward planning including share schemes and salary sacrifice, as well as compliance and investigations. More 

  

Simon Warne

Partner

Simon is a Tax Partner in the Kent office. His experience includes remuneration and pension planning to avoid the higher marginal rates and advising on the Construction Industry Scheme. Simon advises on the interaction of UK employment taxes with personal and corporate tax, including international aspects and managing HM Revenue and Customs enquiries. More

 

Brian Robson 

Senior Manager  

Brian specialises in advising independent schools and not for profit organisations. His experience covers all aspects of employee taxation in particular PAYE, National Insurance and benefit-related matters. More  

 
 

Stuart Weekes

Partner

Stuart is a Tax Partner based in the Thames Valley office. He works with businesses and other organisations from a wide range of sectors and disciplines including start ups, larger privately owned businesses, corporates and not for profit organisations. Advising on and implementing all forms of management incentives, ranging from cash bonus plans to tax-efficient schemes. More

 

Colin McCullough

Tax Senior   

Colin advises businesses and not for profit organisations on all matters relating to employee taxation including payroll, P11D's, dispensations and PAYE Settlement Agreements. More 

  

Karen Goodwin

Manager 

Karen is a Manager in Cheltenham and is responsible for employment and benefit related matters including overseeing the completion of employers' end of year returns of expenses and benefits and managing the payroll department in Cheltenham office. More 

 

Andrew Learmond 

Tax Senior 

Andrew specialises in not for profit organisations, carrying out reviews of clients compliance procedures to identify areas of risk and advising on how to correct any compliance errors. More  

  

Paul Edwards

Director

Paul is a director in our Midlands Office. He has worked in tax for more than 35 years, and has wide-ranging experience of advising corporates, business owners and other individuals in tax. He has specialised in recent years, providing PAYE Health Checks, compliance and reward planning advice. More 

Please call us on 020 7842 7197 if you have any employer related queries. Alternatively complete our enquiry form and one of our specialists will contact you.

 

Contact Us
David Daly
London, UK
+44 (0)20 7842 7364