HM Revenue & Customs (HMRC) has the authority to investigate the tax affairs of all taxpayers and seems increasingly willing to use this power to raise money for the government.
You may be contacted directly (without our knowledge) and asked to provide information by way of a “Compliance Check” which despite its name is essentially a formal tax investigation.
These “Compliance Checks” are on the increase and we wanted to make you aware as providing the wrong information could land you in trouble.
The series of questions include:
- What does the business do?
- Where is the work carried out?
- What are the names of Directors, how are they paid and what are their responsibilities?
- Who prepares the payroll?
- Which payroll package is used?
- How many employees does the company have?
- Are employees paid below the national minimum wage? If so why?
- How many workers are paid off-payroll?
The questionnaire may also ask for more details about the expenses of the business including details of staff entertaining, work travel and loans to staff or directors.
Alongside the questionnaire, many employers are also asked to provide policies and documents, as well as key data about the business.
What to do if you receive a Compliance Check
First off don’t panic! But it is important that you take the request seriously and contact us so we can help ensure the correct information is provided. Failing to complete the questionnaire or providing incorrect information could lead to additional investigations or financial penalties.
Proactive advice and service is what separates a good accountant from a great one. Our unique, fresh, and hands-on approach to accounting is designed to help you succeed.
From business plans and marketing strategies to fundraising requirements and cash flow, we’ll be on-hand to support you. We’ll guide you through the process of planning for your business growth, ensuring your processes allow to you grow efficiently and your financial systems allow you the best possible insight into your successful future.
Not only that, we’ll work with you to create both achievable short term and longer term business goals to reflect a realistic and successful outcome of the business growth.