PAYE healthcheck ― outcomes

Copyright © 2025 LexisNexis
Produced by Tolley in association Susan Ball
Employment Tax
Guidance

PAYE healthcheck ― outcomes

Copyright © 2025 LexisNexis
Produced by Tolley in association Susan Ball
Employment Tax
Guidance
imgtext

Once the PAYE healthcheck has been carried out, the organisation will receive a report. This will detail the reviews undertaken, their findings, and make recommendations to improve the employer’s compliance processes. In many cases a written report will simply be a formal record of earlier presentations made to the employer on the issued identified.

As a result of the outcome of the review, changes may need to be made within the organisation.

As the healthcheck report is potentially disclosable (see below), if such changes are not made and the same issues come to light in a later HMRC compliance check, this will almost certainly lead to a greater level of penalties being imposed than if the shortcomings were only discovered at that later stage.

The report / feedback format

At the conclusion of the healthcheck, a report will be provided to the employer. The format of the report should be agreed before the start of the review and ideally detailed in the engagement terms.

Note that, once the employer receives a written report, it is a legally

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Susan Ball
Susan Ball linkedinicon twittericon

Susan has over 25 years' experience working extensively in the employment tax, investigations and reward field. She advises clients in the commercial and charity sectors at Crowe Clark Whitehill LLP

Susan has over 25 years' experience working extensively in the employment tax, investigations and reward field. She advises clients in the commercial and charity sectors. She has a breadth of experience in dealing with all aspects of PAYE and Social Security in the UK and Overseas as well as the Construction Industry Scheme, employee benefits and expenses, compliance and employment status issues together with reward planning including salary sacrifice.Susan an experienced presenter and writes regularly for a number of publications.She sits on the Chartered Institute of Taxation's Employment Taxes sub- committee, the board of The Eastern Angles Touring Theatre Company, and is a fellow of Suffolk New College.Susan has been honoured with the Beatrice Wilkinson Memorial Award at the East of England Business Women of the Year Awards and listed in The Payroll World "Payroll Top 50 2013".

Read moreRead more
Powered by Tolley+™
  • 25 Nov 2025 10:43

Home/ Tolley Tax Guidance/ Employment Tax / Enquiries, penalties and appeals

Popular Articles

Corporation Tax

Corporate interest restriction ― administrative aspects

Corporate interest restriction ― administrative aspectsThe corporate interest restriction (CIR) regime has some specific administrative rules in addition to the general administrative requirements for corporation tax returns. This guidance note does not include commentary on provisions that are

14 Jul 2020 11:19 | Produced by Tolley Read more Read more
Employment Tax

Payroll record keeping

Payroll record keepingUnder SI 2003/2682, reg 97, “...an employer must keep, for not less than 3 years after the end of the tax year to which they relate, all PAYE records which are not required to be sent to [HMRC]...”. Reasons for keeping the records include:•being able to calculate tax and

14 Jul 2020 12:52 | Produced by Tolley in association with Ian Holloway Read more Read more
Corporation Tax

Entity classification

Entity classificationImplications of entity classificationIf a subsidiary is established, it is important to determine how it will be treated for UK tax purposes as this will determine the basis on which it is taxed. A subsidiary may either be transparent (like a partnership, where the individual

14 Jul 2020 11:37 | Produced by Tolley Read more Read more