The following Owner-Managed Businesses guidance note Produced by Tolley in association with Lesley Fidler provides comprehensive and up to date tax information covering:
The first contact from HMRC will normally be a letter either:
highlighting specific areas and requesting information and records, or
requesting a time and date for a visit to review relevant records
The compliance check factsheet CC/FS3 ‘Compliance checks ― Visits ― by agreement or with advance notice’ will usually be enclosed.
A full list of compliance check factsheets may be found on HMRC’s website.
Contact by HMRC with the employer may be made by phone but arrangements must be confirmed in writing. The employer’s agent that is named on a form 64-8 on which the ‘Employer PAYE scheme’ box has been ticked will be sent a copy of the initial letter. Seven days’ notice of the inspection must be given unless a shorter time is agreed with the employer. Any doubt about the nature and extent of the records to be reviewed should be clarified as soon as possible. Normally records for up to 12 months will be requested.
If the suggested dates are not convenient then an alternative should be agreed as soon as is practicable. It should not usually be a problem arranging for the records to be reviewed away from the business, perhaps at the agent’s office.
If it is known that there are irregularities in current or previous years, whether as a result of a PAYE health check or otherwise, then consideration should be given to disclosing these at the earliest opportunity. It is very difficult to envisage a situation in which withholding this information from HMRC could ever be a justifiable course of action. Once notification of the visit has been given, the disclosure will no longer be regarded as unprompted (which affects the level of penalties) unless the disclosure is entirely unrelated to employer compliance. Nevertheless, telling HMRC of such irregularities is a factor in reducing the penalty within the band of applicable percentages. See the Penalties for inaccuracies in returns ― overview guidance note.
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,250 in 2020/21 and 2019/20) to the spouse or civil partner where neither party is a higher rate or additional rate taxpayer. The legislation calls this the ‘transferable tax allowance’ but the GOV.UK website
The corporate interest restriction (CIR) essentially limits the amount of interest expense a company can deduct from its taxable profits if the interest expense is over £2 million. The actual mechanics of the CIR calculation are highly complex (the legislation is over 150 pages long) and are
This guidance note provides details of quarterly instalment payments (QIPs) for corporation tax purposes and which companies need to pay their tax liabilities in this manner.Generally, corporation tax is payable nine months and one day after the end of the relevant accounting period. However, large
This guidance note provides an overview of the steps businesses need to take if aspects of their business change, and as a result, they need to notify HMRC about the change.Changes to name and / or addressIf a business changes its name and / or its address then it is required to notify HMRC of the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.