Employer Compliance Review
PAYE (Pay As You Earn) investigations, also known as an Employer Compliance Reviews, are the most common form of HMRC enquiry. They are undertaken to ensure that employers and contractors are complying with all their obligations for taxes (PAYE and Construction Industry Scheme – CIS) and National Insurance Contributions (NIC).
What the review covers
Ordinarily, HMRC will want to review your business records at your place of business, so they can understand your business, interview key members of staff and look at the records.
An Employer Compliance Review will focus on:
- PAYE and NIC
- benefits in kind on forms P11D
- the status of workers
- expats and inpats
- salary sacrifice
- Intermediaries Legislation (IR35)
- termination payments
- entertainment expenses
- travel expenses
When HMRC establishes an underpayment of PAYE or NIC, they will seek to recover this from the employer or contractor. HMRC may also seek to recover any underpayment from an employee or a subcontractor.