Prevent Employer Compliance Reviews with our Employer Compliance Health Check review service

HM Revenue & Customs are focusing more of their resources on checking that businesses are meeting their compliance obligations.

What does this mean for your business?

If you have employees or you are a sole director of the company, you need to make sure that you are being meeting your compliance obligations.

So, what are these obligations?

  • Paying your staff the correct rates of pay, such as the national living wage
  • Submitting your payroll in real time to HMRC
  • If you provide any benefits to your staff, ensuring these are reported correctly on form P11D or via the payroll
  • Assessing any subcontractors you take on correctly to determine their status within your business. For example, should they be taken on as an employee or can they correctly be treated as a subcontractor.
  • Operating CIS in the correct way and ensuring that you are taxing the appropriate payments at the correct tax rates.

HMRC Employer Compliance Reviews are one of the most common enquiries and can turn out to be a real risk to businesses with directors and employees. They do not need a reason to open one of these enquiries and can do this at any time.

They look in detail at PAYE, subcontractors, expenses and benefits in kind, which turn out to be some of the areas that are easy for busy employers to get wrong. If HMRC find any errors they will not only ask you to pay the tax owing, but they will also charge interest for late payment and penalties depending on the circumstances of why the errors were made.

How can we help?

We have a tax specialist, Richard Heaton, who previously worked for HMRC for over 33 years. He has an in-depth knowledge of how HMRC operate and can provide assistance in liaising with HMRC when an enquiry is opened.

Not only that, Thompson Wright are now offering an Employer Compliance Health Check review service.

What would this review service entail?

  • We would carry out a full review on your business currently to establish what your current systems are and what you need to be reporting.
  • We would recommend processes to out into place to make your business more robust with HMRC compliance.
  • Advise you if we identify any problems or issues which need to be addressed before HMRC find them.

We will, of course, always be there for you when HMRC launch an enquiry, but a Health Check review will prevent most Employer Compliance Reviews before they start and will ensure that, if you are unlucky enough to be subject to a review, everything will be in place to make sure HMRC leave empty handed.

To find out how we can help, get in touch with our expert team today here.

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Posted in Blog, Business News, Business planning, Employees, Tax.