HMRC often consider these as part of the PAYE Investigation or Employer Compliance Review:
To the extent that HMRC establish a liability to tax or NIC, the amount owing will also include interest on any late duties and potentially a monetary penalty based on a percentage of the tax and/or NIC due.
A PAYE investigation, also known as an Employer Compliance Review, is conducted by HMRC officers who want to ensure that employers and contractors are meeting all of their tax, NIC and CIS obligations in relation to their employees and subcontractors.
Usually HMRC prefers the PAYE investigation is conducted at the employer’s premises, initially to enable a discussion to be held with key personnel within the company and secondly to undertake a review of all the prime records. Care and advice should be taken on what records HMRC is entitled to see and who, if anyone, should attend any meeting with HMRC.