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HMRC internal manual

Compliance Operational Guidance

HM Revenue & Customs
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Supporting Guidance: employer compliance: guidance by subject: liaison: ITSA/CTSA caseworker

Close liaison with the ITSA/CTSA caseworker is an essential feature of Employer Compliance work. Prior to issue of a package RIS will have checked CQI/Caseflow/CRMM for an open enquiry.

EU Large Employers

CRM cases

The ECTS will discuss all aspects of risk assessments with the CRM before taking any action (COG905610).

Non CRM cases

You should contact the Single Point of Contact (SPOC) (COG905690) to

  • obtain approval to carry out any kind of compliance activity, and

where approved

  • maintain liaison where inaccuracies are discovered.

Non EU Large Employers

You should always, where information has not been provided

  • check CQI/Caseflow/CRMM for previous enquiries within the past 2 years.

If this shows previous enquiry activity you should

  • contact the relevant caseworker to discuss any findings that may impact on your check into the employer’s/contractor’s records.

Where no activity has been recorded you should

  • contact the ITSA/CTSA caseworker and discuss any risks identified that may affect the business accounts before the compliance check commences and during the check, where appropriate
  • report to the ITSA/CTSA caseworker any evidence of inaccuracy (This content has been withheld because of exemptions in the Freedom of Information Act 2000) COG904540(This content has been withheld because of exemptions in the Freedom of Information Act 2000) , for example

    • the employer appears to have little regard for the PAYE Regulations and repeated Regulation 80 (COG915150) or Section 8 NIC (COG915155) action is evident
    • there is evidence of undisclosed takings
    • there is evidence of unsatisfactory book keeping (COG906190).

In limited company cases investigation of the directors’ affairs are often inseparable from the examination of the company’s accounts. You should report instances where

  • a director’s lifestyle is clearly beyond the level of his declared income or
  • benefits and expenses are such that directors appear to be using the company to finance their personal expenses.