Employer Compliance Review (PAYE)

[punky]

Has anyone had one of these?

I just had Inland Revenue on the phone looking to book a date than they can come check the books/wages records.

He mentioned it was something to do with PAYE. I know nothing about all this. My aunt who does all the bookkeeping and wages for me as a favour, and i'm waiting on her to get back to me, but i'm wondering how much she knows as she's not a professional bookkeeper.

I have found the following links, but nothing makes much sense:

http://www.hmrc.gov.uk/manuals/emmanual/EM8250.htm
http://www.lawspeed.com/providers/case_studies/lawspeed_revenue_case_studies/adam.aspx?referrertabid=1526&linktext=Adam

I'm a bit worried. AFAIK, everything is done legit. We submit all our accounts as we have to through a bona fide (and expensive) accountant. Do they suspect us of some kind of wrong-doing? We are legit, but i'm wondering if we have do something wrong unwittingly.

Many thanx in advance.

[joglynne]

Hi Gavin.

As long as you can back up all your paperwork with bank records etc. you will be OK honest.

Give your accountants a phone call and let them know that the Inland Revenue has been in contact with you. If you have insurance cover with them for this type of occurrence they will need to be informed.

The Inland Revenue does a random check on all businesses, if you had been suspected of falsifying your PAYE records you would have been approached in a different way. It can be time consuming and if your Aunt can be present it will probably make it easier to answer any questions that come up. If for some reason they find an error It will just need to be corrected.

The last time we had a check visit we had not followed up an emergency tax code. The employee had left us the previous week and we were just told to keep a tighter check in the future.

To be on the safe side make sure you have all your business papers (invoices, vat books etc.) at hand so that you aren't scrabbling around trying to find something and getting hetup when the inspector asks for evidence to backup any entries in your books..

The main thing to remember is that this will just be a routine visit and you know that to the best of your knowledge you have complied with the Tax regulations.

add. ;) coffee and chocolate biscuits if they opt to do the visit at your premises.:)

[MrJDGaF]

Don't know anything about all that myself but I managed to find a link to a more readable PDF, hope it helps.
www.downtownliverpool.com/pdf/Employer_Compliance_Reports_-_GT.pdf

[punky]

Many thanx for that Jo :)

So its just a case of deep breathing then and trying to relax :erm:

---------- Post added at 17:26 ---------- Previous post was at 17:17 ----------

Don't know anything about all that myself but I managed to find a link to a more readable PDF, hope it helps.
www.downtownliverpool.com/pdf/Employer_Compliance_Reports_-_GT.pdf

That's much clearer, many thanx :)

[joglynne]

<snip>

So its just a case of deep breathing then and trying to relax :erm:

Yes, practice deep breathing, but you really should be OK.

I worked in Debt Management for the Government for many years. Stood up in court giving evidence countless times, didn't blink an eye. Had many cases where fraud was jointly investigated between my department and the IR. This resulted in me working closely with the IR inspectors, they were a great bunch of people on the whole.

However on a personal level, like many people when it came to the IR checking up on me ( I did all the PAYE for my husbands business), I was convinced I had done something wrong and that we would be sent to the Tower at the very least. :D

[sollp]

Payl

[punky]

Yes, practice deep breathing, but you really should be OK.

I worked in Debt Management for the Government for many years. Stood up in court giving evidence countless times, didn't blink an eye. Had many cases where fraud was jointly investigated between my department and the IR. This resulted in me working closely with the IR inspectors, they were a great bunch of people on the whole.

However on a personal level, like many people when it came to the IR checking up on me ( I did all the PAYE for my husbands business), I was convinced I had done something wrong and that we would be sent to the Tower at the very least. :D

Ahh, OK. Thanx :)

Another quick question if you don't mind... When they investigate, they make sure the nett wages leave the firm's account, but they don't go any further do they? Where the money goes after it leave's the firm's bank accounts and gets paid into the employees back accounts does it? We don't need employee's bank account statements and have their lifestyles scrutinised do they?

Payl
How do you mean mate? :confused:

[sollp]

Ahh, OK. Thanx :)

Another quick question if you don't mind... When they investigate, they make sure the nett wages leave the firm's account, but they don't go any further do they? Where the money goes after it leave's the firm's bank accounts and gets paid into the employees back accounts does it? We don't need employee's bank account statements and have their lifestyles scrutinised do they?


How do you mean mate? :confused:

Pay As You Like,(self employed) to whom ever it applies, just thought i would sling it in for the sake of it.

[Knobbly]

Has anyone had one of these?

I just had Inland Revenue on the phone looking to book a date than they can come check the books/wages records.

He mentioned it was something to do with PAYE. I know nothing about all this. My aunt who does all the bookkeeping and wages for me as a favour, and i'm waiting on her to get back to me, but i'm wondering how much she knows as she's not a professional bookkeeper.

I have found the following links, but nothing makes much sense:

http://www.hmrc.gov.uk/manuals/emmanual/EM8250.htm
http://www.lawspeed.com/providers/case_studies/lawspeed_revenue_case_studies/adam.aspx?referrertabid=1526&linktext=Adam

I'm a bit worried. AFAIK, everything is done legit. We submit all our accounts as we have to through a bona fide (and expensive) accountant. Do they suspect us of some kind of wrong-doing? We are legit, but i'm wondering if we have do something wrong unwittingly.

Many thanx in advance.

Most self employed people can expect an inspection at one time or another, I sincerely doubt it's anything that's raised any suspicion, rather just that you were picked out of the metaphorical hat.

[joglynne]

Ahh, OK. Thanx :)

Another quick question if you don't mind... When they investigate, they make sure the nett wages leave the firm's account, but they don't go any further do they? Where the money goes after it leave's the firm's bank accounts and gets paid into the employees back accounts does it? We don't need employee's bank account statements and have their lifestyles scrutinised do they?


<snip>

As far as your IR check goes they will check that you have made the correct tax/ national Insurance deductions and that your records show details such as full names and NI numbers. They will probably cross reference payment made to themselves ( they should come with printouts of your payments to them) and your employees with your bank records but they will not expect you to provide any employees bank accounts. If you make any cash payment/advances to your staff you will be expected to provide receipts.

This should be where your PAYE investigation ends. However, unlikely but possibly, one of your employees may have a question mark against them for other reasons, ie working whilst receiving State benefits and this could mean further details being taken from you. You have to provide any information requested but this would have no bearing on your firms own audit.

Stop panicing.!!!!! :D

[punky]

Thanx very much :nworthy: