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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: compliance revenue recording: compliance revenue arising from a compliance check

A compliance check is where we proactively address an identified compliance risk. This may be done by a

  • visit
  • written enquiry
  • telephone enquiry.

In LB and the Large and Complex population a compliance check is referred to as risk working.

The working of the case and compliance revenue arising from a compliance check should be recorded on the Employer Compliance System (ECS)/Caseflow as a Full or Aspect Compliance Check or for L&C the recorded response depending on the system the case has been opened on.

Compliance revenue can be scored following a compliance check where an inaccuracy has been identified which has or would have given rise to an underpayment of tax/NIC and

  • the underpayment is being pursued or
  • a return has been submitted and the criteria at COG915590, COG915601, and/or COG915610 has been met
  • where the return is not yet due, action has been taken to ensure that the inaccuracy is corrected and the return when submitted will be correct.

Compliance revenue cannot be scored where

  • returns that are listed as outstanding are collected during the course of an EC compliance check except in certain circumstances, see COG915590, COG915580, and COG915610 
  • tax/NIC for the current year has been deducted but not paid to HMRC except where there is no PAYE Scheme, see COG915640 
  • there is no inaccuracy for example, a change of car in the current year does not mean that the P11D would be incorrect unless the employer was not aware of the requirement to enter details onto a return, or submit a return
  • an unprompted voluntary disclosure is made.