Pay As You Earn (PAYE) is a system used to pay employees. Before the employee receives their wage, the necessary National Insurance Contributions (NIC) and income taxes are deducted by the employer. PAYE investigations are carried out on average every 6 years although there can be a much larger gap between routine inspections without need for concern. In instances where a business has previously been a cause for concern, or evidence has been found that they are not acting in appliance with the PAYE system, these checks can be more frequent.

HMRC will inform you that your business is to have a PAYE investigation and this will result in a meeting with a representative of HMRC at your business premises. For the duration of the meeting it is advised that you should have a business tax accountant present to represent your company’s finances as well as answering any queries the HMRC officer may have regarding your official reports. HMRC is likely to request and review several of your company records, including those concerning employee payrolls and any expense claims made. Our experienced specialist accountant will be able to organise and provide HMRC with all the relevant documentation they require.