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PAYE investigations

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
  • vans

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.

Geraint Jones

Partner, Private Client Tax

T +44 (0)20 8922 9354

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Construction industry

Employer Compliance Reviews are also undertaken by HMRC staff to ensure that contractors in the construction industry are complying with all their obligations for taxes, including the Construction Industry Scheme (CIS).  These reviews focus on the areas listed above and payments to subcontractors under CIS.

Why you should contact us

Our team has a significant amount of experience in being able to handle and resolve any Employer Compliance Review your business may be faced with.

For more information or help from one of our tax investigation specialists, please contact us using our enquiry form.