PAYE Audits & Tax Inspections

A PAYE Audit is a tax investigation by HMRC to check that employers are meeting their legal obligations in respect of PAYE.

They can cover: PAYE; Benefits in Kind; National Insurance Contributions; payments and loans to directors; National Minimum Wage.  Sometimes the inspections consider whether self-employed contractors should be treated as employees instead (so called "Status Enquiries").

PAYE Audits & Tax Inspections can be a substantial burden on employers and very costly in tax; NIC; interest, and penalties - or a global PSA (PAYE Settlement Agreement).

Areas examined usually include: payments to casuals; round sum allowances paid; incentive schemes; operation of PAYE/ NIC; Benefits in Kind; Status (i.e. the categorisation of workers as employed or self-employed); IR35; expenses payments (including travel, subsistence and client entertainment payments); use of cars and vans; provision of private fuel; loans; assets used by directors; late or incorrect end of year returns (e.g. P11Ds, P14s).

How can Lynam Tax Enquiry Experts help me?
If you, or your client, are subject to a PAYE inspection Lynam Tax partners can bring their 90+ years’ experience of dealing with these issues to help you, and get the optimum result for the business.  The issues can be technically varied and complex, with case law constantly evolving.  Specialist help and expertise can save large sums.

If you need advice and help with a PAYE audit problem or status dispute call:

PAUL LYNAM: 0845 643 9997
ANDREW NUTBROWN: 0771 877 8710

or email partners@lynamtax.co.uk