PAYE Tax Investigation Disputes

Broadly, PAYE (Pay-as-you earn) is the system used in the UK by HMRC  to collect income tax and national insurance contributions from employees as they earn their wage. The employer will deduct the the income tax and national insurance contributions from the employees salary and will send them to the HMRC on a monthly or quarterly basis.


The PAYE process in a very complex minefield and often employers need the assistance of an Accountant to ensure that their PAYE legal obligations have been met. HMRC regularly carry out PAYE audits to ensure that the employer has met their legal obligations and that the correct forms have been filled out and filed with HMRC. If HMRC find that that the correct procedures were not complied with, they could issue penalties to the employer or take further steps and carry out payroll investigations. If a penalty has been issued to the employer, the employer has the opportunity to request that HMRC reconsider their decision.

If you have been issued with any fines and/or penalties or find yourself as part of a payroll investigation then you should call us immediately so that we can advise your business accordingly. If necessary we can make detailed representations on your behalf to HMRC explaining why you should not be liable for any penalty. As a final resort our experienced advocates are able to advise and represent you in relation to the appeals process at the Tax Tribunals.


HMRC may have contacted you stating that you have unpaid your income tax and as such they will be seeking to recover the underpayment by increasing the amount of income tax you pay for the forthcoming tax period. Often there can be underpayment of income tax due to the fact that the wrong tax code has been assigned to you or that the income tax underpayment is as a result of miscalculation of the tax you pay.

If you form the view that you have not underpaid income tax or that the underpayment is not as a result of your own doing then you should contact our specialist advisers immediately so that we can assess your case and advise you on the appropriate course of action, including assisting you with HMRC internal review procedures.

HAVE YOU BEEN CONTACTED BY HMRC IN RELATION TO A PAYE INVESTIGATIONOur Lawyers are here to help and are able to provide clear advice and information to assist you. To contact one of our specialist lawyers please click here or call 02071830529.

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