Status Disputes and PAYE Audits in West Midlands Status Disputes / employed or self employed? HMRC have increased their investigations in this area and many employers are facing obtrusive and demanding challenges to their treatment of benefits and pay for staff and directors alike. Where a business engages others to provide services this will often lead to a challenge of their 'tax status'; are they employed or self employed?
Any Investigation must be managed correctly; including those into payroll, benefits and worker's status. A thorough understanding of HMRC's processes, information powers, technical issues and the interaction with penalty mitigation is essential. Properly managed there are opportunities to obtain a speedier resolution and significant reductions in penalties.
This type of investigation will often accompany an investigation into the tax affairs of your business or company. In a status dispute HMRC will often suggest that the workers are employees; which could result in your business facing a substantial and unexpected bill.
We have considerable experience in dealing with these matters both from within the Revenue and from the Profession. You can be assured that all of this experience is working for you.
We can manage the investigation on your behalf; reducing the need for you to be interviewed by HMRC officers as much as possible and controlling the flow of information and documents. We remain completely objective throughout the entire process; as will our advice and wherever applicable our specialists will present a robust technical defence of your position.
PAYE, NIC and Benefit in Kind audits and enquiries. Tax investigations are called many things and come in many guises; a PAYE audit or check is simply another one. The purpose of the audit is to ensure that an employer is complying with all his obligations under the PAYE regulations and will include a review of:
The operation of PAYE National Insurance Contributions Benefits in Kind Any payments, loans or assets made available to directors Status (categorisation of workers as employed or self employed) For any employer a small adjustment for workers can be multiplied many times over for each employee and then for several tax years, add in interest and penalties and the end result can be quite devastating. There are options to enter into a global PAYE Settlement Agreement (PSA) but the bottom line can remain a significant challenge and risk for any business.
The usual areas that may cause difficulties can include; the general operation of PAYE, benefits in kind, payments to casuals (P46 procedures), round sum allowances, travel costs, business entertaining, subsistence, provision of motor vehicles and fuel, IR35 issues, incentive or bonus schemes, loans, payments to directors, assets used by directors, late or incorrect returns and payments.
Another associated area covered by such Audits may include the correct operation of the CIS (Construction Industry Scheme) for those deemed contractors or subcontractors. This area can mask its own pitfalls and difficulties. As part of a review auditors may review the employer's adherence to the National Minimum Wage regulations which is also 'policed' by HMRC.
Anything to do with the above can be complex, technically difficult and a great financial risk to any employer. PAYE auditors are experts in their field of operation; engaging the assistance of a specialist to assist you will ensure HMRC deal with matters correctly and possibly save you large sums of money.
Get in Touch For further information on our range of services and to discover how we can help get your affairs in order, please call Rooney Tax Services today on the number displayed on this page. Alternatively you can email us using the form on our contact us page and one of our experienced team will respond as soon as possible.