These usually begin with a very friendly-sounding telephone call from the local H M Revenue & Customs office. You will be assured that the inspection is just routine, which it is. There is a lot of extra money made from investigations and the exchequer is keen to get their hands on it. You will also be assured that there is nothing to worry about. Anyone who has ever gone through an investigation might disagree with that assertion.
The fact is that the tax legislation and the way the revenue operates the PAYE system mean that it is very easy to fall foul of the rules and inadvertently do something wrong. The poor person who runs payroll services will then get it in the neck from their manager as the company is presented with an unexpected bill often totalling thousands of pounds.
It is no wonder that so many people are outsourcing their payroll services. We at Dataplan have seen a steady increase in the number of businesses using our services. This is hardly surprising when you consider that we are often able to save a company money as well as taking away the worry and dread associated with hearing from the local tax office.