PAYE Problems

A medium sized engineering company in the Midlands received a visit from a PAYE compliance officer. The officer checked the wages and benefits position of all directors and employees in detail.

Following the visit, an attempt was made to assess motor expenses and entertaining costs on the directors. The business mileage of the company cars was also challenged.

The negotiations between the accountant and the Inland Revenue became drawn out, and at times very intense with both sides quoting tax cases to support their views. However, the accountant's arguments provided successful, and a small settlement figure was reached.

Professional fees of over £3,000 were charged for successfully defending the PAYE affairs of the company.