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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: liaison: personal tax compliance (PTC) teams: personal tax compliance to employer compliance referrals

(This process is also available as a 161103 PTC to EC flowchart.pdf)

 

Where a Personal Tax Compliance (PTC) caseworker uncovers information during a PTC enquiry suggesting that additional liabilities are due from an employer, for example:

  • Class 1 A NIC in respect of benefits provided to the taxpayer under enquiry.
  • Class 1 A NIC in respect of benefits that may have been provided to other directors or employees.
  • PAYE & Class 1 NIC due in respect of payments made to the taxpayer under enquiry.
  • PAYE & Class 1 NIC due in respect of payments that may have been made to other directors or employees.

Then the PTC caseworker should take the following actions:

  1. Contact an Employer Compliance (EC) Single Point of Contact (SPOC) to seek agreement for the referral of the identified risks.

  2. The Employer Compliance SPOC will consider the value of the risks and the suitability or otherwise for referral.

  • If the EC SPOC suggests the risks do not warrant a referral then the PTC enquiry can be concluded without referral.
  • If the Employer Compliance SPOC agrees a referral is appropriate then continue to step 3.
  1. If the Employer Compliance SPOC agrees a referral is appropriate then the PTC caseworker should complete the EC referral request using the RIS Automated mailbox process.

This will send the information automatically to a designated EC team with responsibility for PTC to EC referrals.

The EC referral template should note the full contact details of the referring PTC officer and include reference to any additional information held by PTC not suitable for electronic transfer.

The estimated yield expectations agreed between PTC and the EC referral contacts should also be included on the EC referral request.

4. The EC Manager will allocate the case and the allocated caseworker will acknowledge to the referring officer that the referral is working with them.

You can request any additional information held from the referring officer to supplement the referral.

  1. The EC allocation officer will set up the case and address the identified risks.

  2. On the closure of the EC check the EC caseworker will inform the PTC referring officer of the result of the compliance check and any appropriate feedback.

  3. End.

{#SPOC}Employer Compliance single point of contact

Michael Lightowler
Centenary Court
Bradford
Telephone: 03000 538531