26 July 2018
In recent months we have seen a significant increase in the number of PAYE ‘records checks’ and enquiries aimed at employers within the motor industry.
HMRC’s initial approach to these checks often appears to be increasingly now via a questionnaire followed by a telephone discussion, but they should not be underestimated and can be extremely costly if you do not have adequate policies and monitoring in place.
The deadlines given for a response can be very short, but this shouldn’t prevent you taking proper advice and ensuring that the enquiry process is handled correctly.
The increase in the number of these records checks mean that now is a good time to take the following steps:
- Carry out a full health check of your PAYE compliance. Are your policies up to date and accurate? Is your monitoring of expenses sufficient? Do you have any areas of risk and can these be mitigated against? Do the factual procedures followed by your employees actually reflect what is recorded on paper?
- Consider the cost implications of an HMRC enquiry, and review your fee protection insurance position; are you covered against the accountancy costs of handling an inspection?
Of particular focus during these checks is the use of fuel; an often highlighted area of particular risk for the motor industry, as seen in Paul Daly's recent blog on the subject. This is something that cannot be mentioned enough, as the potential cost of falling foul of HMRC scrutiny can very quickly become extreme.
Ensuring that you have proper systems in place to monitor these areas not only helps prevent issues from arising, but also demonstrates to HMRC that you take a proactive approach to compliance which can go a long way in instilling confidence in the investigating inspector.
If you would like to discuss this topic, or arrange for a health check or review of your systems, please contact me or speak to your local UHY automotive specialist.
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