19 February 2018

Enquiries and compliance visits

Employment tax and an organisation’s relationship with HMRC concerning employment matters is becoming an increasingly important matter.

HMRC is increasingly considering risk in identifying which employers are to be subject to enquiries or compliance visits generally.

Even if no compliance errors are found by HMRC, such visits can be a distraction in terms of management time and can drag on for a number of months. Obtaining professional help for the matter will also be an expense that will not have been budgeted for.

In such visits it is important for employers to demonstrate they are tracking changes within the tax system, identifying the adjustments they need to make to their systems and processes.

It has been a while since dispensations were removed by HMRC, and this has put more emphasis on governance and policies in relation to expenses.  There is an expectation from HMRC that organisations are managing developments and adjusting their systems as appropriate.

Insurance can be used to cover professional costs specifically and get the assistance the employer needs to manage the enquiry process.

Finally, as stated above, HMRC is using the enquiry process in new and ingenious ways with compliance visits probably being less frequent, however, when they do occur, they tend to be targeted and wider in coverage including such matters as living wage and expense policies.

If you have any concerns in relation to employment tax or just want to talk a matter through please do not hesitate to contact us.

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