PAYE Compliance Services
PAYE legislation is increasingly complex and difficult to stay on top of for employers. This difficulty has been exacerbated in recent times as HMRC increases the volume of PAYE audits it conducts, knowing the complexity of the regulations leads to many employers unwittingly breaching them.
Basic errors in this area can quickly add up, resulting in significant losses for SMEs across the country. This can cause serious cash flow issues, in addition to the stress caused and lost working hours over the course of an audit.
How we can help
Crawfords’ payroll compliance services take all payroll worries out of your hands, allowing you to focus on growing your business.
Our PAYE accountants work side-by-side with your team, ensuring every aspect of your system is completely compliant with all legislation. And should you be subjected to an audit; we will manage the process for you.
Not only could this save you large sums of money, it will also minimise stress during an incredibly difficult time. Leaving you free to continue running your business as normal.
If you have already received a letter informing you of an upcoming audit, our PAYE compliance accountants can help you prepare all of the information required for the visit of HMRC and ensure potential problems are flagged before the visit, allowing them to be resolved or the repercussions minimised.
What happens in a PAYE compliance visit?
Also known as an Employer Compliance Review, the purpose of a PAYE compliance visit is to ensure you’re meeting all payroll, minimum wage, National Insurance (NIC) and Construction Industry Scheme (CIS) obligations.
When investigating, HMRC will look at areas including but not limited to:
- Benefits in kind
- Employee expenses
- The employment status of all workers
- Incentive schemes used for employees
- Directors’ loans.
Before any investigation commences, you will receive a letter informing you of HMRC’s intention to investigate you. This will include their reasons for the investigation and when they expect to commence it.
The investigation will consist of HMRC coming to your business, where they will perform an in-depth review of all records relevant to the investigation and interview key individuals within the business. This process could last anywhere from days to months, depending on the scope of the investigation and size of your business. Ensuring you’re completely prepared is vital if you are to see a positive outcome.
Should HMRC establish your business has not been compliant, they will attempt to negotiate an agreement regarding any taxes owed that day. If they have reason to believe you have acted deliberately or attempted to hide your actions, they will also seek additional penalties.
What triggers an Employer Compliance Review?
Large businesses, where the chance of issues slipping through the cracks is much larger, will face a standard review every six years.
Smaller businesses, however, will only be investigated if HMRC notes an inconsistency of some kind. Common occurrences triggering an investigation are:
- Late return of your End of Year Expenses and Benefits form (form P11D)
- Returning factually incorrect forms
- A pattern of non-compliance in related businesses.
By ensuring all relevant information is returned to HMRC correct and in good time you will minimise the possibility of being investigated and remaining compliant with HMRC’s obligations will ensure you don’t face any unexpected payments should you be chosen for investigation.
We are a specialist accountancy firm which has been helping small business owners and large businesses manage their payroll systems since 1959. To discuss how our PAYE compliance accountants could help you, simply click here to contact us or call us on 0161 828 1000.