Employment Tax Explained

Posted on 16/09/2016 in

Employment Tax Explained

Income Tax was introduced as a temporary measure by Prime Minister William Pitt to fund the Napoleonic wars with France in the early 1800’s and has been with us ever since.  Not bad for a temporary measure!

Today, PAYE income tax is the single biggest yield to the Treasury and it accounts for some 51.3% of all the United Kingdom’s annual total tax yield. If you add to that, the amount of employer and employee Class 1 National Insurance Contributions (NIC) which are collected through the PAYE system, you may begin to understand why employment tax has become a very big issue for our chums in HM Revenue & Customs (HMRC).

On 31 March each year, HMRC publishes a report of the tax yields it has collected over the tax year, but it also publishes details of what it THINKS it should be collecting from taxpayers and needless to say, there is always a massive shortfall between what has been collected and what, according to HMRC, should be collected. This same report also publishes yields which HMRC has recovered through carrying out PAYE Audit or PAYE Compliance visits with employers.  When these visits happen, it is almost a cast iron certainty that any employer who is visited will end up writing a cheque to HMRC for some compliance failure.  In the year to 31 March 2016, HMRC made recoveries of some £57 million as a result of compliance visits.  It is not surprising therefore that the numbers of staff undertaking these visits has significantly increased, as have the numbers and frequency of such visits.

At the request of, and in conjunction with Scottish Gymnastics, the Employment Tax team at BDO will be presenting two seminars in January 2017, one in Edinburgh and the other in Glasgow, where you will learn all about what HMRC is looking for when it undertakes compliance visits. You will also learn about those areas where HMRC makes the biggest recoveries from compliance audits.  More importantly however, you will be provided with advice on how to ensure that your club’s compliance is of the highest possible standard so that hopefully your club will not end up having to write a cheque to HMRC for any future compliance failures.

Overall Learning Outcomes

  • Advice on how to ensure that your club’s compliance is of the highest possible standard
  • What HMRC is looking for when it undertakes compliance visits
  • Areas where HMRC makes the biggest recoveries from compliance audits

Workshop Dates:

31st January 2017: 6pm - 8pm (approximately), Caledonia House, Edinburgh
9th February 2017: 6pm - 8pm (approximately), House for an Art Lover, Glasgow, G41 5BW

Book

Email development@scottishgymnastics.org letting us know: which date you would like, club name and number of spaces

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