Employment Tax

PAYE healthcheck ― outcomes

Produced by Tolley in association Susan Ball
  • 22 Mar 2022 12:25

The following Employment Tax guidance note Produced by Tolley in association Susan Ball provides comprehensive and up to date tax information covering:

  • PAYE healthcheck ― outcomes
  • The report / feedback format
  • Content of the report
  • Introduction and scope
  • Executive summary
  • Appendices
  • Full body of the report
  • Time limits for assessment and penalties
  • Time limits for assessment
  • What penalties can be charged?

PAYE healthcheck ― outcomes

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 discoverable document in that it is not covered by legal privilege. In the case of R (on the application of Prudential plc and another) v Special Commissioner of Income Tax and another, the Court of Appeal ruled that advice about tax law taken from specialist tax accountants does not attract legal advice privilege. HMRC can therefore request to see the document.

The report may take the form of:

  1. a full written report on all

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

There's no margin for error. Think Tax.
Think Tolley.

TolleyGuidance gives you direct access to critical, comprehensive and up-to-date tax information and expertise you can rely on.


Popular Articles

Settlor-interested trusts

What is a settlor-interested trust?A settlor-interested trust is one where the person who created the trust, the settlor, has kept for himself some or all of the benefits attaching to the property which he has given away. A straightforward example is where a settlor transfers assets to trustees for

23 Mar 2022 10:33 | Produced by Tolley Read more Read more

Substantial shareholding exemption: overview

The substantial shareholding exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. Conversely, if losses are generated by the disposal and the SSE conditions are

04 May 2022 07:51 | Produced by Tolley Read more Read more

Married couple’s allowance

The married couple’s allowance (MCA) is only available if one of the two spouses or civil partners was born before 6 April 1935. This means that one member of the couple must be at least 87 years old on 5 April 2022 to qualify for an allowance in the 2021/22 tax year.There is a distinction in the

22 Mar 2022 09:44 | Produced by Tolley Read more Read more