Enterprise series: An inspector calls – are you ready for compliance checks?
Thank you for joining our recent webinar on HMRC compliance checks. The session explored why HMRC carries out compliance checks, what typically triggers them and what businesses can expect in practice across VAT and PAYE. Our speakers shared practical insight into how HMRC approaches inspections, common risk areas they focus on and how organisations can prepare for and manage checks confidently while minimising disruption, cost and potential penalties.
Key takeaways from our speakers
Tax dispute resolution
- HMRC compliance checks are rarely random. They are usually triggered by perceived risk, sector focus, or compliance history rather than an assumption of wrongdoing.
- HMRC has statutory powers, but these are limited — visits should be at a reasonable time, minimise disruption and businesses can involve advisers or request meetings at their accountant’s office.
- Businesses should only provide information that HMRC is reasonably entitled to request and avoid volunteering unrelated information that could extend the scope of a check.
VAT
- Don’t panic: in the vast majority of cases, VAT compliance checks are routine and do not indicate that HMRC believes something is wrong.
- Be proactive: take control early by agreeing a timetable that works for your business and involving your adviser at the outset to help manage the process.
- Be organised: ensure your VAT records are clear, complete and easy to access so you can respond confidently and efficiently to HMRC requests.
- Deal with issues head‑on: mistakes do happen, and identifying and disclosing errors early, rather than waiting for HMRC to find them, can significantly help with penalty mitigation.
Employment tax
- PAYE checks extend well beyond payroll and commonly uncover issues around benefits in kind, expenses, off‑payroll workers and termination payments.
- Remote working, international assignees and short‑term business visitors are increasingly scrutinised, with many employers underestimating the tax and reporting obligations involved.
- HMRC errors do occur, particularly in subjective areas such as employment status, so it is essential to challenge assessments and seek advice before accepting liabilities.
Next steps
If you would like to discuss how these issues apply to your organisation, need support with an ongoing or anticipated HMRC compliance check, or would like help reviewing risk areas before HMRC does, please get in touch with our team. We would be happy to arrange a confidential conversation.
