PAYE Inspection

by **roxy** on Thu Apr 15, 2010 2:17 pm

We are due to have a PAYE and CIS inspection next week.
Can anyone advise how many years the inspector is entitled to go back.
I keep records for about 8 years but I don't want to admit to that if its not necessary.
This is our first inspection and we have been employing staff and subcontractors for 30 years.

Thank you

by **RAL** on Thu Apr 15, 2010 2:43 pm

They should tell you in the letter what record you need to provide when they come and visit. Generally, the inspector would ask for current year and previous year record. Generally they would not go further if they did not find anything or minor issue (careless mistake), if found major problem (fraud) then they likely can go back as far as 6 years or more.

I had one inspection recently and inspector wanted last three years record for inspector when she visited. However, once she saw the record, she did not go beyond current year.

by **roxy** on Thu Apr 15, 2010 3:37 pm

Thanks for the reply.

They only sent a letter confirming the date of the visit and didn't mention which records they would want to see.

by **RAL** on Thu Apr 15, 2010 5:21 pm

I do not have reference handy, I think you need to keep payroll records for three years, however, as per other taxes law you need to keep either 5 years 10 months (self employed) after tax years and 6 months (limited company) after the accounting year.

So I would at least keep ready for 3 years if you can otherwise, give them ring and ask!

by **Tax Champion** on Sun Apr 25, 2010 6:49 pm

I would be interested to know how this visit went, and whether they discussed employment status for your subcontractors.

by **RAL** on Sun Apr 25, 2010 10:32 pm

RAL wrote:I do not have reference handy, I think you need to keep payroll records for three years, however, as per other taxes law you need to keep either 5 years 10 months (self employed) after tax years and 6 months (limited company) after the accounting year.

So I would at least keep ready for 3 years if you can otherwise, give them ring and ask!

Just realised the typo, for limited company it is 6 years after the accounting year.

by **roxy** on Mon May 31, 2010 4:21 pm

Employment status didn't really come into it as its not really an issue for us.
All our subbies are Ltd companies.

Inspection went OK only looked at last two years. Only stayed one morning instead of the two days they initially said.