How confident are you in the accuracy of your PAYE? PAYE compliance is exceptionally complex and the price of getting it wrong can be very high.
With HMRC reviewing the records of around 50,000 small businesses each year, your compliance is essential.
Just some of the most common errors noted by HMRC include -
- failure to operate the right tax code upon start of your employment
- using a tax code without HMRC authority
- failure to use the same tax code for a new tax year, where no new code has been issued
- failing to operate tax codes sent electronically by continuing with out of date tax codes
- incorrect use of the PAYE Taxable pay tables
- mistakes in setting up software for use in the new tax year
- failure to follow guidance issued in Employers Help books or Bulletins
- addition or mistype of pay figures
At Dataplan we can offer our clients a full PAYE Health Check which is completed by a former Inspector of Taxes who we have rescued from HMRC. This review will look at all the major area that the HMRC consider when undertaking compliance visits.
We can advise on:
- All benefits in Kind and Class 1A NIC implications including
- Expenses payments, what can be paid tax free and what can and should be included within a dispensation thereby reducing paperwork and the need to report expenses on P11D.
- Foreign travel and the best methods, for paperwork and tax, of paying expenses without deduction of tax and NIC and without the need of a Dispensation.
- Termination/Redundancy payments - somewhat of a minefield so it is imperative, at a time when employees are being laid off and money is tight, the correct tax treatment is applied. The common thought that £30000 can be paid tax free is a fallacy.
- Non taxable payments and Benefits in Kind. It is equally important to establish what can be paid tax free as what must be taxed through payroll or as a Benefit in Kind.
Added pressure for companies working in the construction industry
If you operate in the Construction Industry, it is also imperative that the status of your self employed workers is also correctly assessed. HMRC are very keen to reclassify workers engaged as self employed as employees and thereby increase the money into the Exchequer’s coffers.
The implications are severe if HMRC come calling and challenge status because there is the added threat that your Gross payment Status will be rescinded.
If you are interested in a PAYE Health Check or have any specific PAYE matters you would like to discuss, please contact us.