Supporting Guidance: employer compliance: guidance by subject: commencing the compliance check: pecuniary liabilities and benefits
You must establish
- the types of benefits provided, and
- to whom they have been provided.
This information should be gathered during the talkthrough and you should
- refer to the help available in the EC Testbank.
You must then confirm
- whether they have been correctly returned on form P11D or have been voluntary payrolled
- Class 1A NIC has been correctly accounted for on form P11D(b)
- Class 1 NIC has been correctly accounted for on forms P35 and P14 (up to and including 2012-13)
- Class 1 NIC has been correctly accounted for on a Full Payment Submission (FPS) (from 6 April 2013) see COG904240.
Where you identify that a PAYE Settlement Agreement (PSA) is not in place, but you consider that one would be beneficial, you can invite the employer to consider whether they would benefit from using a PSA, see COG907200.
It should be made clear to the employer that a request for copies of the directors loan account and questions about whether this is overdrawn are directed for
- to check that PAYE has been operated correctly and
- to check that any S175 benefit has been correctly included on the form P11D COG930040
- to establish how the account is funded to determine if any NIC liability exists.