Compliance reviews

HM Revenue and Customs carries out most employer compliance checks because it has identified a specific risk or because its automated risk assessment produces a score above a set limit. The purpose of the compliance check is to address the risks, identify inaccuracies and collect any additional liabilities.

It is known that HMRC are currently targeting dental professionals because of specific risks they have identified within the industry. Other employers are selected for compliance checks entirely at random. The review carried out by HMRC covers the range of employer obligations, procedures, payroll operations and items appropriate for inclusion on forms P11D, returns of expenses payments and benefits. It will also include a detailed check of the employment status of any self-employed workers and this is particularly relevant with regard to locum work and dental hygienists.

An HMRC visit

Most employer compliance reviews consist of a prearranged visit from HMRC officers to see how a business operates, talk to the relevant people and examine the business records. Relevant people would include a director/the owner or partners and other staff involved with payroll and employer processes.