How confident are you in the accuracy of your PAYE, NI and other tax systems?
Tax and benefits compliance is complex, and the price of getting it wrong can be high. PAYE Health Checks have been around for a while in the corporate sector, but increasingly Academies and MAT’s are coming under scrutiny by HMRC. Dataplan Education offer our school clients a PAYE Consultancy, completed by a former Inspector of Taxes who we have recruited from HMRC.
Common errors noted by HMRC
- Failure to operate the right tax code for starters
- Using a tax code without HMRC authority
- Failure to use the same tax code for a new tax year if no new tax code has been issued
- Failure to operate new tax codes sent electronically
- Failure to follow guidance issued in Employers Help Books or Bulletins
- Inaccuracies in input of pay figures
- Employment status/off payroll intermediaries in the public sector, failure to consider and operate PAYE on such workers
- Round sum payments made to employees for business use of their own mobile telephones, these are taxable in full
- Termination payments, particularly Payments in Lieu of Notice (PILONs), are greatly misunderstood and PILONs particularly are not taxable, whatever the contract of employment states
What does our PAYE and Tax Consultancy include?
We will tailor our consultancy service to your specific needs. It may be that you require a full review and audit or advice on a specific issue, such as Benefits in Kind, or off-payroll working. Here is an example of what a full consultancy project could look like.
Our Health Check is an extensive evaluation and scrutiny of your PAYE tax and benefits systems. We use a 32-page checklist to go through your processes and practises with a fine tooth comb (because HMRC will do the same!).
From this initial check phase we will identify any errors that you need to address. Sometimes we find instances where the correct process is in place, but it is not being executed properly.
We will ensure there is compliance throughout your systems both in process and implementation.
At this stage we will also pick up non-payroll issues such as BIKs (Benefits in Kind) and the Apprenticeship Levy.
These first two stages will usually have discovered areas of your PAYE and tax system where things are not being done correctly.
Going beyond the correction of errors, however, we will also have identified opportunities for tax efficiencies, which may result in tax savings for your school.
If you would like to discuss a specific PAYE or tax issue, or discuss how we can help you be more compliant and efficient, contact our tax specialist Paul Chappell 03331 128000 or via our enquiry form