A PAYE investigation asks whether the business has operated PAYE correctly. It is almost always a visit, usually with two officers. They will want to speak to the people who actually run payroll, not only the director.
They look at wages, expenses and benefits, whether people treated as self-employed should have been on PAYE (status), redundancy payments, CIS if you are in construction, and short-term workers coming from or going abroad. Real Time Information has applied since 2013; they will test whether submissions match what was actually paid.
How a payroll visit spreads
Officers take useful fragments back to VAT and Corporation Tax colleagues. Director benefits and the proprietor’s own tax are of particular interest. It is common for a PAYE visit to lead to a VAT check or a personal or company enquiry. Software does the arithmetic; a junior member of staff coding a payment can still create years of arrears.
How Solaratax helps
PAYE is technical. If they find errors they will want tax and NIC for several years, plus interest and sometimes penalties. We answer how the system was run, contain the years and people in scope, and negotiate the figures. We already run payroll for clients, so we can show them a working file rather than a theory.
Call 01615 314179 or email enquiries@solaratax.co.uk for a free, confidential discussion. We will not contact HMRC in your name until you instruct us to act.
Questions we are asked
Related investigations
Employment status enquiries
When HMRC says a “contractor” should have been an employee — construction, IT and everywhere else labels are used.
IR35, personal service companies and managed service companies
Intermediaries legislation: PSCs, MSCs, umbrella companies and who now has to decide IR35.
Company tax investigations
Corporation Tax enquiries, directors’ private records, and the way VAT or PAYE often gets pulled in.
Talk to Solaratax
128 City Road, London, EC1V 2NX. 01615 314179. enquiries@solaratax.co.uk. Free, confidential, no obligation.
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