SAu6

From Taxation Interventions Register

Back to SAu (self-audit

One of the roles of HMRC is to help customers get their tax returns right, so that they and their employees pay the right amount of tax, or receive the right benefits.

We are testing new ways of working with customers which we believe will be less time consuming and less complicated than other procedures we use. Your participation in this trial is voluntary and this is not a notice of intention to enquire under our existing formal powers.

We feel that these new approaches will help customers to deal with any mistakes quickly and get their tax right now and for the future.

In our experience, employers commonly make errors in the operation of Pay As You Earn (PAYE) on casual labour. This can be particular so in restaurants where there may be:

• a relatively high turnover of staff;
• confusion over the operation of P46 procedure.

You can use the HMRC website to find out how to deal with these items correctly for tax purposes. You may find it useful to use the following site navigation: http://www.hmrc.gov.uk/guidance/cwg2-chapter4.pdf

In addition, if you have any queries of a general nature, you may wish to contact the Employer Helpline on 0845 7143 143

I am not suggesting that you have made such errors but I would like you now to review the records you keep and the operation of PAYE on the wages paid as reflected on your 2005 return and let me have by [insert date] either: your declarations made within the last 12 months and let me have, by [insert date], details of how any such disposals were dealt with together with:

• confirmation that adequate records are kept and PAYE correctly applied; or
• details of any errors you have now identified, in order that I can recalculate your tax liabilities.

If there is anything you do not understand or would like to discuss, you are welcome to ring me on the above number.

A copy of this letter has been sent to your representative.