Employment Tax Services
Deloitte’s employment tax practice provides access to a national network of specialists who provide assistance, insight and advice on all aspects of employment tax compliance. We work with our clients to ensure that compliance obligations are met, uncertain tax positions are resolved and that cost efficient processes and procedures are implemented and maintained using our extensive experience and innovative technology solutions.
Key contact: James Warwick
Know Your Customer (KYC)
HMRC has increased its focus on employment tax compliance by launching an initiative called “Know Your Customer” (KYC) as part of the wider tax business risk review process. The purpose of KYC is to assess employment tax risk for Large Business employers only - the 2,000 or so largest employers in the UK.
As part of the KYC initiative, all Large Business employers are being invited to attend a meeting to enable HMRC to establish a clear and consistent understanding of how they manage their employer compliance obligations. HMRC will then use that information to help inform its overall risk rating for that business.
KYC meetings are most effective when the business has invested the time in understanding what is involved in KYC and preparing appropriate attendees in advance. We have considerable experience of working with businesses to help them understand the KYC process, adequately prepare for the KYC meeting itself and to respond to post meeting follow up.
Global Employment Tax Compliance
Multi-national organisations are increasingly globalising, outsourcing and offshoring core functions such as payroll, HR and finance. Whilst there are many benefits of doing this it can lead to challenges for employers in meeting their employment taxes compliance as follows:
- Complex processes are often overly simplified in a shared service centre environment, leading to compliance exposures and risk;
- The outsourcing and globalising of local country processes (such as payroll) can lead to a gap in skills and knowledge to manage off-cycle and non-standard items locally, to identify and escalate potential risk issues and to manage the impact of business change.
- The geographical distance from the business (where core processes are off or near-shored) can mean that the compliance processing function is disconnected from the business, and consequently oversight and visibility are lost.
We recognise and respond to these challenges, bringing together a globally coordinated network of specialists and market leading technology to enable the effective management of employment taxes in all jurisdictions.
Payroll and Employment tax reporting
The importance of getting payroll and employment tax returns (RTI, Forms P11D, PAYE Settlement Agreements, CIS, Form 42 etc) right has never been greater with increased focus by HMRC and a complex penalty and interest regime for those who do not get filings right and on time.
Deloitte’s national network of employment tax specialists, coupled with our market leading technology solutions, are well placed to help employers meet their compliance obligations and to maximise cost control. We also use our extensive experience to help employers to implement appropriate controls to balance cost efficiency with compliance assurance where payroll and reporting obligations are outsourced.
Employment Tax Training
Many employers have the resource to deal with day to day employment tax obligations in house but in a fast moving environment with increasing compliance responsibilities it can be a challenge to keep appropriate staff up to date. In addition HMRC initiatives including Senior Accounting Officer (SAO) and Know Your Customer (KYC) are increasingly focusing on whether appropriate training arrangements are in place.
We offer a suite of training solutions for employers including an innovative E-learning solution for expense authorisers, bespoke training on a wide range of employment tax topics and a national employment tax school.
Key Contact: Harvey Smith
Employment Tax Governance; including Senior Accounting Officer (SAO) obligations and Tax Strategy Disclosure requirements
The Senior Accounting Officer (SAO) regime, which applies to the largest companies in the UK, places an additional compliance obligation on employers. Additionally, many business are now required to disclose their tax strategy on the internet, and as a result are focused on maintaining appropriate governance and controls to stand behind that strategy. These requirements present specific challenges from an employment tax perspective due to the number of different returns and need for interaction between a wide range of stakeholders including payroll, HR, reward, tax and finance.
We work with many of the UK’s largest businesses to assess their current level of compliance, work on the implementation of appropriate tax accounting arrangements where required and support with ongoing testing to maintain the arrangements. Our experience of working with the largest employers as well as our established methodology and interaction with HMRC enables us to benchmark current arrangements and to provide constructive input.
We tailor our support to the needs of each business, providing both employment tax-focused solutions as well as broader holistic tax input working as part of a cross-tax team.
Key contact: James Warwick
Car and Mobility Consulting
The provision of company cars and/or car allowances is often one of the largest costs faced by employers as well as being a central part of the employee reward package. In our experience the complexity of the decision making process is often underestimated and the options available to create efficiencies are not always fully understood.
The Deloitte Car Consulting team is a team of dedicated car specialists with considerable experience of working with employers in both the private and public sector using our market leading technology solutions to assess, model and help design and implement efficient fleet, fuel and car allowance solutions.
Key Contact: Mike Moore
Construction Industry Scheme (CIS)
There is an increased focus by HMRC on compliance in relation to CIS matters both for businesses in the private and public sector as well as Companies coming into the UK from overseas who are entering into contracts for construction operations. The rules around the requirements to be registered and the registration process itself can be complex and failure to operate the scheme correctly can result in significant penalties. Deloitte’s national network of CIS specialists advise on a range of CIS issues including:
- Assessing initial registration obligations;
- Advising on deregistration options for non construction businesses;
- Reviewing and helping to implement CIS procedures; and
- Help with payment status challenges from HMRC.