PAYE & sub contractor inspection


N

NTL

I am after some advice.

I am a bookkeeper and a client of mine has received a letter from the
Revenue advising them that they want to carry out the above. The client has
asked me to be present and would like to know what to expect, what kind of
things are they likely to check etc.

Thanks
 
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J

Jon Griffey

NTL <[email protected]> said:
I am after some advice.

I am a bookkeeper and a client of mine has received a letter from the
Revenue advising them that they want to carry out the above. The client has
asked me to be present and would like to know what to expect, what kind of
things are they likely to check etc.

Thanks
The Revenue should say in their letter or in the accompanying booklet
what they wish to check.

As you have mentioned subcontractors I would suggest that a major area,
and potentially one that could be financially crippling is going to be
status.
--
Jon Griffey FCCA CTA
Hackett Griffey
Chartered Certified Accountants & Registered Auditors
2 Mill Road, Haverhill, Suffolk, CB9 8BD

Tel (01440) 762024

www.hackettgriffey.com

See website for disclaimers
 
D

DoobieDo

[email protected] cleared their said:
I am after some advice.

I am a bookkeeper and a client of mine has received a letter from the
Revenue advising them that they want to carry out the above. The client has
asked me to be present and would like to know what to expect, what kind of
things are they likely to check etc.

Thanks
uk.business.payroll is further down the corridor --------->

try there...
 
S

Simon

NTL said:
I am after some advice.

I am a bookkeeper and a client of mine has received a letter from the
Revenue advising them that they want to carry out the above. The client
has asked me to be present and would like to know what to expect, what
kind of things are they likely to check etc.

Thanks
Has your client indicated whether the accountant is going to be present. Its
not a good idea to go into this thing without proper representation. I know
it costs money but its money well spent and even if there is something that
is not to HMRC satisfaction, then at least he can head of the worst of the
damage at the outset.

As an EC officer, I do make a conscious effort to be as fair as I can when
dealing with an unrepresented employer but there is only so far I can twist
my own arm up my back when negotiating a settlement. However, accountants
have no such qualms and usually get their clients a fair deal, provided they
have some experience in these matters and will almost certainly earn their
fees.
 
N

NTL

Thanks for the advice. They do have an accountant but they are struggling
financially and cannot afford the accountant- needless to say I am far
cheaper. However I am only an accounting technician and have no experience
with regards to investigations from the revenue.
 
S

Simon

NTL said:
Thanks for the advice. They do have an accountant but they are struggling
financially and cannot afford the accountant- needless to say I am far
cheaper. However I am only an accounting technician and have no
experience with regards to investigations from the revenue.

They are going to be looking at the payroll records, petty cash and
cashbook. They will be looking for payments to employees not paid through
the payroll, expenses or benefits that have not been returned on P11D and
with regard to the subcontractors, they will be looking to see that the
rules have been followed correctly. Also, as Jon has already pointed out,
they will be looking at the status of the workforce.

I don't mean to be rude but the fact that you have had to ask the question
of this group means that you are unlikely to be able to protect your client.

There are booklets in PDF format at www.hmrc.gov.uk on both Status and in
dealing with an EC review, you would do well to look these up at least.

You can look at IR109 which outlines what happens after a review has been
started and COP 3 that outlines the process. Another useful one would be
IR148 "A guide for tax and National Insurance for contractors in the
construction industry. Are your workers employed or self-employed?
" as Jon is right, HMRC are looking much closer at this element of the
business.

But as I said earlier, I have been at this for a very long time and have
reviewed many employers records from corner shops to major international
corporations and they all NEED proper representation, it is a false economy
not to have it.
 
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T

Troy Steadman

Simon said:
They are going to be looking at the payroll records, petty cash and
cashbook. They will be looking for payments to employees not paid through
the payroll, expenses or benefits that have not been returned on P11D and
with regard to the subcontractors, they will be looking to see that the
rules have been followed correctly. Also, as Jon has already pointed out,
they will be looking at the status of the workforce.

I don't mean to be rude but the fact that you have had to ask the question
of this group means that you are unlikely to be able to protect your client.

There are booklets in PDF format at www.hmrc.gov.uk on both Status and in
dealing with an EC review, you would do well to look these up at least.

You can look at IR109 which outlines what happens after a review has been
started and COP 3 that outlines the process. Another useful one would be
IR148 "A guide for tax and National Insurance for contractors in the
construction industry. Are your workers employed or self-employed?
" as Jon is right, HMRC are looking much closer at this element of the
business.

But as I said earlier, I have been at this for a very long time and have
reviewed many employers records from corner shops to major international
corporations and they all NEED proper representation, it is a false economy
not to have it.
As far as this meeting is concerned it is surely too late to amend
anything that is wrong. The tax inspector is going to find whatever he
is going to find, and the only two things you can do are:

1) Ensure that all crucial information has been left elsewhere due to
your ignorance. That means the inspector has to waste time writing to
you to ask for it, but without knowing what it is he has to ask for.

2) Somebody's stunning 18 year old daughter is drafted in as a part
time mini-skirted employee to ensure the inspector wastes what his left
of his day drinking tea and being distracted by her legs.

Surely that is the professional approach?
 
D

DoobieDo

2) Somebody's stunning 18 year old daughter is drafted in as a part
time mini-skirted employee to ensure the inspector wastes what his left
of his day drinking tea and being distracted by her legs.
the inspector might be female.... still, could work I suppose ;p
 
J

Jon Griffey

Troy said:
2) Somebody's stunning 18 year old daughter is drafted in as a part
time mini-skirted employee to ensure the inspector wastes what his left
of his day drinking tea and being distracted by her legs.

Surely that is the professional approach?
That is completely outrageous. Rather the professional would just get
them talking all day about the cricket ;o)


--
Jon Griffey FCCA CTA
Hackett Griffey
Chartered Certified Accountants & Registered Auditors
2 Mill Road, Haverhill, Suffolk, CB9 8BD

Tel (01440) 762024

www.hackettgriffey.com

See website for disclaimers
 
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S

Simon

Jon Griffey said:
That is completely outrageous. Rather the professional would just get
them talking all day about the cricket ;o)
Not Cricket, that might wake him up to the fact that the employer had used
the names of the England cricket team for all the dead heads
 
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