HMRC suspects that payroll fraud has risen 50% over the last two years, and it’s increaseing the number of investigations it conducts each year.
During the 2012/13 tax year, HMRC investigated 2,099 businesses suspected of evading national insurance and income tax – a rise from 1,350 in 2010/11.
Many of these firms are likely to have been struggling, using the tax money deducted from employees to keep trading. Others will have supplied the taxman with false information or failed to return correct P11Ds, which are used to reports benefits and expenses that aren’t put through the payroll.
But whatever the reasons, HMRC is now more likely than ever to investigate if your payroll isn’t accurate. So if you’re at all worried about your own payroll, get in touch – we’ll advise you on how to make it compliant and ensure you have nothing to fear from the taxman.