PAYE healthcheck ― overview

Produced by Tolley in association

Employment Tax

Guidance

Why is a PAYE healthcheck needed?

A PAYE healthcheck is where an employer asks a third party, often an accountancy firm providing tax advisory services, to under-take a review of an employer’s payroll and benefit procedures to ensure that they are delivering the right results in terms of compliance with HMRC’s rules on tax and NIC on employees’ pay, expenses and benefits. It is designed to minimise the risk of interest and penalties and to improve compliance.

Some organisations shy away from the idea of having a PAYE risk review as it is often seen as being an unnecessary cost. Other organisations take the view that if there are problems with their payroll and benefit procedures, these will surely be identified by their auditors as part of the annual audit process. However, a detailed examination of the client’s payroll, benefits and expenses is not a requirement of an audit, particularly as the audit concept of an error being ‘material’ does not apply in tax. Therefore,employers should not assume that a lack of comment from their auditors

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Susan Ball

Susan has over 25 years' experience working extensively in the employment tax, investigations and reward field. She advises clients in the commercial and charity sectors at Crowe Clark Whitehill LLP

Susan has over 25 years' experience working extensively in the employment tax, investigations and reward field. She advises clients in the commercial and charity sectors. She has a breadth of experience in dealing with all aspects of PAYE and Social Security in the UK and Overseas as well as the Construction Industry Scheme, employee benefits and expenses, compliance and employment status issues together with reward planning including salary sacrifice. Susan an experienced presenter and writes regularly for a number of publications. She sits on the Chartered Institute of Taxation's Employment Taxes sub- committee, the board of The Eastern Angles Touring Theatre Company, and is a fellow of Suffolk New College. Susan has been honoured with the Beatrice Wilkinson Memorial Award at the East of England Business Women of the Year Awards and listed in The Payroll World "Payroll Top 50 2013".

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