SRR5

From Taxation Interventions Register

Back to SRR (short risk review)

One of the roles of HMRC is to help customers get their tax returns right, so that they 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 many employers in the hairdressing and barber profession fail to operate PAYE correctly in respect of part-time employees, especially those whose pay fluctuates above and below the income tax and National Insurance thresholds.

Your 2005 return shows a lower than expected amount of employee costs, which includes deductions of income tax (PAYE) and National Insurance Contributions.

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:

hhtp://www.hmrc.gov.uk/giudance/cwg2-chapter4.pdf.

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

There may be many reasons why you have returned less than we would normally expect, but I would like you to look again at the entries in your 2005 return and, having done so, complete the attached questionnaire and return it to me by 30 August 2006.

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