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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: computations: extracts from records

When unable to use an estimated computation you should

  • make full extracts from the employer’s or contractor’s records showing

    • the omitted pay for individuals for all years concerned, or, if this is not possible
    • the actual amounts paid each year for each type of inaccuracy.

This can be carried out by support staff under your guidance.

Where extraction work would be time consuming you should

  • ask the employer or contractor to provide the relevant details.

In doing so you should

  • agree a timescale for providing the relevant details
  • advise the employer you may need to check the accuracy of the information, and
  • advise that if the information is not provided within the agreed timescale

you will

  • use estimates for the basis of the computation (COG908090)

Where the employer’s records are computerised you should ask the employer to provide relevant records, see COG940885.

Where the employer provides reports you should

  • spot check these to satisfy their accuracy (figures supplied by an accountant need not be checked to the same degree).

If the employer asks whether co-operation in supplying additional information would mitigate potential penalties you should

  • reply that such co-operation would be recorded on the case papers but that the matter of penalties is agreed at a higher level.