The Taxman's Visit

Dealing with a PAYE Review

The Taxman Visit is a comprehensive guide to dealing with a PAYE/ Employer Compliance Visit from start to finish. The book takes a step by step approach detailing over 100 questions which are likely to be asked, explains what the issue may be and provide a solution. HMRC instructions to the tax office staff are also included.

The Taxman Visit is a comprehensive guide to dealing with a PAYE/ Employer Compliance Visit from start to finish. Every employer will be visited on average every five or six years. H M Revenue & Customs (HMRC) have specialist teams and Tax Inspectors to review employer records and to establish if the correct tax and National Insurance is being calculated and paid over to the tax office.

The author as an ex Inspector and Compliance officer has dealt with over 1,000 of these reviews both working for HMRC and for the accountancy profession defending his clients(a case of gamekeeper turned poacher).

The book takes a step by step approach detailing over 100 questions which are likely to be asked, explains what the issue may be and provide a solution. HMRC instructions to the tax office staff are also included.

This book is for accountants, tax advisers, employment lawyers and employers and explains question by question, how to deal with the review. The book is split into sections highlighting different areas like payroll, expenses, benefits and the Construction Industry Scheme, so that the correct information can be found easily. Every employer is likely to receive their next PAYE review in the next five years, so forewarned is forearmed.

The Taxman Visit is a comprehensive guide to dealing with a PAYE/ Employer Compliance Visit from start to finish. The book takes a step by step approach detailing over 100 questions which are likely to be asked, explains what the issue may be and provide a solution. HMRC instructions to the tax office staff are also included.

Contents


Tables of authorities. xi

Abbreviations. xiii

My Background.. xv

Introduction. xvii

Chapter 1 - Background.

Employer Compliance Reviews (ECR) 1

Aspect review... 4

Employer Compliance Questionnaire. 4

Chapter 2 General Questions.

How long has the business been trading?. 7

Has the company been bought, sold or involved in a buy-out?. 7

When was the last HMRC visit?. 8

Chapter 3 Payroll

Can you provide a parameter report for any payrolls operated?. 13

Do you use a computer bureau to process your payroll?. 14

How many staff work at the company and how often are they paid?. 15

Are there any employees paid below the National Minimum Wage (NMW)?. 15

How many directors are there?. 16

Are there any non-executive directors and how are they paid?. 17

Do you hold authorisation for all employees to work in the UK?. 18

Do you employ any part-time employees?. 21

Do you employee any casual employees?. 22

Do you employ any students?. 24

Do you hold a National Insurance number (NINO) for all employees?. 26

Do you hold the full name and address for all employees?. 27

Do you have a code number for all employees (including part-time employees)?. 28

Do you use code NT for any employees?. 30

Have any employees signed a form P46?. 30

Do you hold authorisation for all NIC table letters used?. 32

Are any NIC calculations made using table letter B (married women’s reduced rate)?  34

Are any NIC calculations made using table letter C (employees over pensionable age)?  35

Are any NIC calculations made using Contracted Out NIC rates?. 36

Are any employees on NIC Table letter X?. 37

Have there been any changes in NIC circumstances for any employees?. 37

Do you deduct PAYE/NIC from bonuses when they are made available?. 39

Are your monthly PAYE/NIC/CIS payments up to date?. 39

Have you received any PAYE surcharge notices for late payment of PAYE/NIC?. 41

Have all your annual PAYE returns been submitted on time?. 44

Chapter 4 Workers.

Do you pay any workers gross (not already discussed under Payroll)?. 45

How many workers/consultants are paid annually and how much do they receive?  47

Can you provide copies of all contracts for self-employed workers/consultants?. 50

Can you provide details of all Personal Service Companies used?. 50

Do you use any Managed Service Companies (MSC)?. 52

Chapter 5 Inpatriates and Expatriates.

Do you employ any inpatriate employees and how long are they working in the UK?  55

Do you pay any payments to non-resident employees?. 56

Do you deduct NIC from any overseas employees coming to work in the UK?. 58

Do have any expatriate employees?. 61

Chapter 6 Pensions.

What pension schemes does the business have and what are the employer contributions?  67

Are employee personal contributions (to occupational schemes) deducted from gross or net pay?  67

Do you allow any staff to “salary sacrifice” pension contributions?. 68

Chapter 7 Termination Payments.

Have you paid any Statutory Redundancy Payments (SRP) to any staff?. 73

Do you pay any enhanced redundancy pay (ERP)?. 74

How many employees received redundancy payments?. 76

How much has been paid gross as part of any redundancy package?. 78

Did any employees receive additional benefits on leaving?. 78

Can you provide copies of employment contracts for all staff that have left and received a “termination package”?  81

Chapter 8 Expenses.

Do you have an expense policy?. 85

Do you have a staff handbook?. 86

Do you have an expense claim form or a copy of the electronic spreadsheet used?  86

Do you allow any member of staff to claim non-business/private expenses?. 87

Do any staff self-authorise their own expense claims?. 89

Do you have a P11D dispensation?. 89

Do you have a PAYE Settlement Agreement (PSA)?. 92

Do you pay car allowances to staff?. 96

Do you pay any home to work travel for staff via mileage records?. 97

Do any home-based workers attend business premises on a regular basis?. 99

Do any staff have a geographical area that they cover?. 101

Are any workers home-based or site based?. 102

Which staff have a temporary place of work?. 104

Chapter 9 Benefits.

Do you have a Taxed Award Scheme (TAS)?. 107

Do you provide any accommodation to staff?. 110

Do you pay Authorised Mileage Allowance Payments (AMAP) to staff?. 116

Do you gift or sell any assets to any staff?. 118

Do you provide assets which are used by staff for private purposes?. 120

Do you provide business gifts?. 122

Do you provide incentives to employees?. 123

Do you pay bank charges for employees?. 124

How many company cars do you provide?. 125

Are any cars or vans treated as “pool vehicles”?. 128

Can you provide the insurance documents for all pool vehicles?. 132

How did you calculate the original list price of the company vehicle?. 132

Do any company vehicles have personalised number plates?. 133

Do you have any company vans and is there any private use?. 135

Do you provide medical insurance to your employees?. 138

Do you provide a staff canteen or meals for staff?. 139

Do you entertain any business contacts?. 144

Do you ever entertain business contacts on your own premises?. 146

Do you provide tea/ coffee/ drinks to you staff?. 147

Do you entertain your own staff?. 149

Do you provide a Christmas party or annual events for staff?. 150

Do you pay any Christmas bonuses?. 153

Do you provide Christmas boxes or other gifts at Christmas?. 154

Do you provide any vouchers to staff that can be exchanged for cash?. 155

Do you provide any non-cash vouchers to staff?. 156

Do you provide loans to staff?. 157

Do you write off any loans for any staff or directors?. 160

Do you pay any broadband/ internet costs for staff?. 162

Do you pay any home telephone bills for staff?. 163

Do you pay any mobile telephone bills?. 165

Do you provide any Personal Digital Assistants (PDA)?. 168

Do you pay for or provide money for childcare costs?. 170

Do you pay for any awards for staff passing exams?. 172

Do you pay any Long Service Awards to staff?. 173

Do you provide gifts to staff on special occasions?. 175

Do you provide any clothing or uniforms to staff?. 176

Do you pay for any golf or club membership/subscriptions?. 180

Do you provide gym facilities or pay for gym membership?. 182

Do you pay any debit/ credit cards charges?. 184

Do you pay any inducements (or golden hellos) for staff to join?. 187

Do you pay any honoraria payments to any staff?. 187

Do you pay for late night taxis or other transport?. 189

Do you pay any relocation costs?. 192

Do you pay any school fees for any staff?. 196

Do you pay any professional subscriptions or professional fees?. 198

Do you pay any travel season tickets for staff?. 199

Do you make any payments relating to suggestion schemes?. 202

Do you make any payments towards training for staff?. 204

Chapter 10 Share Schemes.

Can you provide details and the rules of all share schemes operated by the company?  207

Can you provide a list of all shareholders in the business?. 209

Have you any reporting requirements that require you to submit a Form 42?. 210

Chapter 11 Construction Industry Scheme.

Has your business spent over £1 million on construction work in the last three years?  213

Do you operate the Construction Industry Scheme (CIS)?. 215

Do you check to ensure that all your construction workers are allowed to work in the UK?  217

Is the status of self-employed workers checked?. 217

Have you verified all the subcontractors who have been paid this month?. 219

Are your monthly CIS returns made on time?. 222

Have you issued a monthly CIS summary for each subcontractor where you have made a deduction?  224

Chapter 12 Other Schemes.

Do you use any “Tax Avoidance” Schemes?. 227

Chapter 13 Settlement

Forms. 235

Booklets. 236

Income Tax allowances. 239

Income Tax allowances table. 239

Income Tax rates and taxable bands. 240

Rates and allowances - National Insurance contributions. 240

Interest rate on late payments. 242

Index. 243

Imprint
Spiramus Press
Publisher
Spiramus Press
Language
English
Product Format
Paperback
Dimensions
234 x 156
Publication Date
23 Jul 2010
Number of Pages
272
ISBN
9781907444104
Product Format
PDF
Publication Date
13 Jul 2010
ISBN
9781907444272