HMRC often consider investigating as part of a Know Your Customer (KYC), Senior Accounting Officer (SAO) reporting, part of a wider tax Business Risk Review (BRR) or an Employer Compliance Review (formerly known as a PAYE investigation):
We can undertake a pre-emptive review of your organisation to determine areas of risk where additional tax or NIC may be due, and can advise on ways to reduce the risk of non-compliance.
Where a review is conducted by HMRC officers they will want to ensure that employers and contractors are meeting all of their tax, NIC and CIS obligations in relation to their employees and subcontractors. HMRC may start by issuing an initial questionnaire before starting a full review in order to determine the organisations overall risk rating. Usually HMRC prefers the review is conducted at the employer’s premises, initially to enable a discussion to be held with key personnel to establish the processes and procedures in place to manage the organisations risks and then to undertake a review of all the prime records.