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Paye Investigation

HMRC Employer Compliance Checks & PAYE Defence

HMRC carries out PAYE investigations to check whether businesses have operated payroll, expenses, benefits, and employment status rules correctly. If HMRC believes mistakes have been made, they will seek underpaid tax, NIC, interest and penalties — often going back several years. Tax Guard specialises in defending businesses during PAYE reviews. We take control of the process, deal directly with HMRC, and work to minimise the financial and operational impact on your business.

What HMRC Looks At

During a PAYE visit, HMRC typically reviews:

Payroll records and RTI submissions
How expenses and benefits are processed (P11D / P11D(b))
Payments to directors and senior staff
Self-employed vs employed status decisions
Redundancy and termination payments
Construction Industry Scheme (CIS) where relevant
Even with a computerised payroll system, errors often arise from incorrect inputs, misunderstandings of the rules, or inconsistent processes. HMRC treats repeated or historic errors seriously.

Why You May Be Selected

PAYE investigations can arise from:

Risk scores in HMRC’s systems
Mismatches between PAYE, VAT and company accounts
Anonymous reports
RTI submission issues
Random selection
A PAYE check can quickly expand into VAT, corporation tax or personal tax enquiries. Early control is essential.

Consequences of Errors

If HMRC finds issues, you may face:

Underpaid PAYE and NIC
Up to 4–6 years of backdated liabilities (or more in serious cases)
Interest on all amounts
Penalties of 0%–100%, depending on HMRC’s view of behaviour
How the case is handled from the start heavily influences the outcome.

How Tax Guard Helps

We defend employers throughout the PAYE investigation process. Our team includes ex-HMRC PAYE specialists who know exactly how these reviews are conducted.

We provide:

Full handling of HMRC correspondence
Preparation of payroll records and responses
Attendance at the PAYE visit
Challenges to incorrect assessments or assumptions
Negotiation to reduce liabilities and penalties
Practical advice to correct systems going forward
Our goal is simple: protect your business and contain the enquiry.

Speak to Tax Guard

If HMRC has contacted you about a PAYE review or you’re worried an issue exists, get in touch before responding. We offer a free, confidential consultation to assess your position and outline the best way forward.

028 9335 0290

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