An inspector calls – are you ready for compliance checks?

An HMRC compliance check or visit can be disruptive, time‑consuming and if issues are uncovered, unexpectedly costly. Our panel discussion is designed to help businesses understand what happens when HMRC carries out a compliance visit and where inspectors are most likely to focus their attention. This webinar explores common triggers for PAYE visits and VAT compliance checks, what HMRC typically looks for when reviewing payroll and tax processes and why minor issues can escalate quickly if not carefully managed. Our experts discuss the pressure points for businesses, including uncertainty over whether existing procedures will stand up to review, the management time required to respond to enquiries and the risk of additional tax liabilities. We’re here to help you recognise the warning signs, understand the risks, and feel better prepared should an inspector call. 0:00 - Introduction 4:20 - What powers do HMRC have when they're making visits to businesses, and what restrictions exist? 6:16 - If you work from home, is that still considered a dwelling? 6:41 - Are inspectors suddenly going to just turn up at the door? Can they do that unannounced? 7:30 - Why has my business been selected? … Do they just randomly select businesses? 12:15 - Would not having had an inspection for a long period increase the likelihood of HMRC undertaking one? 13:07 - What’s the first thing somebody should do if they get an indication there’s going to be a VAT check? 15:34 - Is the person visiting likely to be an expert in your area or sector? 17:57 - How is data collected under Making Tax Digital being used for VAT visits? 18:54 - Can persistent queries on a high-value VAT return trigger a visit? 21:33 - What does HMRC expect businesses to do in terms of supply chain due diligence? 23:19 - During a PAYE compliance check, what do HMRC focus on? 26:18 - Do HMRC tend to ask questions about internationally mobile or remote workers? 28:30 - Is it compulsory to include the addition of holiday pay? 31:45 - What happens when HMRC officers make mistakes? 34:12 - What would your top tips be on how to handle a compliance check? 37:11 - How long does a compliance check typically take to resolve? 37:49 - How does liability get dealt with in practice? Can you negotiate time to pay? 38:31 - What about penalties and interest? 39:40 - How can clients limit the impact and cost of a compliance check? 41:22 - Reverse charges — do we see these as a growing issue? 42:12 - When do we need to start checking the right to work of freelancers?