PAYE Investigations

PAYE Investigation Solicitors

HMRC Tax Investigations wields broad investigative powers. When facing an investigation both companies and individuals need representation from experienced solicitors and accountants who are well-versed in challenging and negotiating with HMRC.

Regardless of whether you are confronted with a civil tax investigation or a criminal one, our tax investigation solicitors and specialist accountants can provide confidential and cost-effective advice and representation.

paye investigations with our paye investigation solicitors in london.

Solicitors & Accountants for Paye Investigations

At Axis Solicitors, our team of skilled tax investigation solicitors and accountants leverage over 15 years of experience in defending clients facing HMRC investigations. Whether your case involves PAYE investigations, tax fraud allegations, or undeclared tax issues, we offer robust and strategic legal representation tailored to your specific needs.

With a proven track record of successfully handling tax cases, our results-driven experts provide services to both high-profile individuals and business owners across Manchester, Birmingham, and London. Regardless of the case’s complexity or scale, we remain fully committed to achieving the best possible outcome for our clients. We also provide remote and other tailored legal services on your demand.

FAQ: PAYE Investigations

During a PAYE employer compliance visit, HMRC will initially request key data such as employee names, National Insurance numbers, wages, deductions, and P11D forms. Specific time periods may be selected for detailed review.

You can also expect face-to-face or virtual interviews, where HMRC officers will ask about your payroll processes, internal controls, and record-keeping practices. The primary aim is to assess whether your business is adhering to PAYE regulations. If any issues or discrepancies are identified, HMRC may expand the scope of their investigation.

It is important to cooperate fully during the visit, while also ensuring that your rights are protected. Seeking professional legal advice from experts like Axis Solicitors can help you navigate the process smoothly and address any concerns that may arise.

Yes, you can challenge HMRC’s findings if you believe they are incorrect. The first step is to request an internal review, where HMRC will reassess their decision. If you are still unsatisfied with the outcome, you can escalate the matter to an independent tax tribunal. Providing new evidence or demonstrating alternative interpretations of tax regulations can strengthen your case and potentially overturn the initial conclusions.

However, the appeals process can be lengthy, and it is advisable to seek guidance from a solicitor or tax specialist to ensure the best possible outcome.

A PAYE compliance visit or investigation by HMRC can be triggered for a variety of reasons. Common triggers include:

  • Complaints from employees about incorrect tax codes or deductions
  • Irregularities in Real Time Information (RTI) submissions
  • High levels of director expenses
  • Reports from ex-employees regarding payroll practices
  • Use of cash payroll systems
  • Discrepancies between payroll records and the company’s accounts

Additionally, HMRC may randomly select businesses for PAYE inspections, particularly in sectors like construction where compliance issues are common. These investigations aim to uncover payroll errors, non-compliance, or potential fraud within your business.

If your business is facing a PAYE compliance visit, it’s important to seek expert legal advice to ensure you’re fully prepared. Contact our experienced team at Axis Solicitors for guidance through the process.

If HMRC identifies errors in your payroll during a PAYE inspection, the consequences will depend on the nature of the mistake. Innocent errors often lead to a voluntary disclosure to correct the issue, with interest charges and, in some cases, penalties on any underpaid tax.

However, if the errors are found to be deliberate or indicate tax evasion, this could result in a more thorough investigation and substantial fines. Employment intermediaries, such as umbrella companies, are particularly vulnerable to penalties for incorrect reporting.

To minimise risks and demonstrate compliance, it’s advisable to keep well-organised, digital payroll records that can be easily reviewed during an inspection.

If HMRC identifies errors in your payroll during a PAYE inspection, the consequences will depend on the nature of the mistake. Innocent errors often lead to a voluntary disclosure to correct the issue, with interest charges and, in some cases, penalties on any underpaid tax.

However, if the errors are found to be deliberate or indicate tax evasion, this could result in a more thorough investigation and substantial fines. Employment intermediaries, such as umbrella companies, are particularly vulnerable to penalties for incorrect reporting.

To minimise risks and demonstrate compliance, it’s advisable to keep well-organised, digital payroll records that can be easily reviewed during an inspection. If you are concerned about these risks, seeking advice from our solicitors and experienced accountants who specialise in PAYE and tax law can help ensure your business remains compliant and prevent costly penalties down the line.

Voluntarily disclosing similar PAYE errors for more recent open years can be a smart move. If past payroll mistakes were identified in periods now beyond HMRC’s enquiry window, taking the initiative to correct these issues demonstrates a proactive and responsible approach.

This can often help reduce further penalties and may result in only interest charges, rather than additional fines. Voluntary disclosure typically reflects better on your business than waiting for HMRC to identify further discrepancies during future audits.

It is always advisable to consult a PAYE solicitor, not just a tax specialist. Solicitors provide comprehensive legal advice, ensuring that your rights are fully protected throughout the process. At Axis Solicitors, we can leverage this distinction by ensuring that our solicitors, are supported by our specialist tax accountants, to allow our solicitors to maintain your legal privileges where applicable. This ensures that any sensitive communications related to legal advice remain confidential throughout the investigation process.

Yes, you can revise your previous accounts to include necessary tax adjustments. If certain tax provisions were missed or incorrect tax treatments were applied, you may be able to correct these in the current financial year. In cases where significant adjustments are required, such as missed tax reliefs or errors, you may need to amend your accounts and resubmit them to HMRC and Companies House.

However, revising past accounts can attract HMRC scrutiny, particularly if the changes are substantial. It is essential to ensure compliance with tax laws during this process. Consulting one of our tax solicitor is advisable to ensure the amendments are accurate and minimise the risk of triggering further investigations.

HMRC PAYE Enquiry?

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Worrying about a PAYE or Payroll Investigation by HMRC? Our PAYE Investigation Solicitors offer client privilege, and our accountants provide specialist tax expertise.

Contact us today for a free initial assessment.