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PAYEQ (PAYE review questionnaire)



Why use PAYEQ Questionnaire? The questionnaire has been designed as a checklist for use in a PAYE compliance review and to highlight tax planning opportunities.


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Client information

Q1
Client Information and completion data

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Tailoring Questions

Q2

Your responses here determine the sections that will be included in this checklist.

Tailoring of sections

Answering No will skip the questions in the relevant section

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Payroll processing and compliance

Q3
Is RTI set up and in place for all PAYE matters and being filed on time?
Q4
Are the PAYE and NI deductions being calculated correctly for the client's employees?
Q5
Are coding notices received in electronic format or paper format - and if electronically how often is the inbox checked for amendments?
Q6
Are employee coding notices retained and dealt with timeously - amended in the payroll systems?
Q7
Do the procedures for treatment of joiners appear adequate and are the correct forms implemented if no P45 is received?
Q8
Does the client employ any students?
Q9
Are there any student loan repayments and are these being made in accordance with instructions received?
Q10
Are there procedures in place to ensure student loan deductions cease on the appointed date?
Q11
Do the procedures re leavers appear adequate ?
Q12
Has there been any maternity pay, sick pay or paternity pay during the year, and if so, are the rebates being correctly claimed?
Q13
Is the client aware that they are required to retain all records and information relating to payroll, benefits etc for 3 years?
Q14
Are valid payslips issued to employees - and how is this done?
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Payroll and interactions / reconciliations with accounting records

Q15
Are wages posted to the accounting records using a payroll journal with a total to a Net Pay Control Account and individual employees' payments to that control account, or are payments just posted direct to wages expense account when paid?

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Net Pay Control Account

Q16
Is the net pay control account reconciled on a regular basis?

Q17
If net pay control is in use, PAYE and NI wll be posted to a liability account. Is this reconciled regularly to the payments actually made?

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Payroll deductions

Q18
Are payments to HMRC in respect of deductions being made on time?

Q19
Are payments to other organisations in respect of deductions from payroll being made on time e.g. deductions under Attachment of Earnings Orders?

Q20
Are other deductions such as loans or advances regularly reconciled?

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Allowances and reliefs

Q21
Is the employer actually eligible to claim the Employment Allowance?

Q22
Has the Employment Allowance actually been claimed?

Q23
No Employers NI is due on those under the age of 21 from 6/4/2015 (up to a limit). Are these employees correctly identified and changed once they attain 21?

Q24
No Employers NI is due on apprentices' (aged under 25) salaries from 6/4/2016 (up to a limit). Are these employees correctly identified and changed once they attain 25?

Q25
Are there any round sum allowances paid?

Q26
If round sum allowances are paid, are these subject to PAYE and NI?

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Company Cars

Q27
Are company cars and/or company vans provided?

Q28
Are the correct car benefits being disclosed - based on original cost etc?

Q29
If company cars are provided are forms P46(car) completed on changes of vehicle or issue of a vehicle for the first time?

Q30
If company vans are provided has the BIK implications been considered?

Q31
Are there any vehicles that are classed as pool cars?

Q32
Are there any double cab pickups in use?

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Mileage allowances, other benefits and expenses

Q33
Is business mileage paid to employees at the appropriate rates where they have used their own vehicles?

Q34
Is VAT being reclaimed on the fuel element of the mileage allowance?

Q35
Where all fuel is paid for by the company, is private mileage reimbused by the employee at the approprate rate or is a benefit in kind charge in place?

Q36
Has the client paid out for any "long service awards" during the year?

Q37
Has the client paid out for any "staff parties" or other staff entertaining and has the total amount been calculated to assess the "per head" cost?

Q38
Are childcare vouchers provided to staff?

Q39
If Yes to Childcare vouchers are they within the exemption limits?

Q40
Does the client pay for some or all of the employees' telephone costs? In whose name is the telephone contract?

Q41
Are there mobile phone expenses and are these in the name of the business or the individual?

Q42
Does the client pay for the accountants fee re preparation of directors' or employees' personal tax returns?

Q43
Are there any staff or director's loans outstanding at a year end?

Q44
Does the client pay for its employees' travel, subsistence and entertaining expenses?

Q45
Are taxi fares reimbursed or paid directly?

Q46
Has any food been provided for meetings etc held over lunch periods etc?

Q47
Has any employee been provided with "living accommodation"?

Q48
Have any relocation expenses been reimbursed to employees?

Q49
Are any medical expenses paid for an employee?

Q51
Were any payments or assets that are "readily convertible" (that can be easily turned into money) made to any employees?

Q52
Are there any payments for termination of employment or loss of office?

Q52
Are there any benefits which either are already provided, or could be provided, that could be classed as “trivial benefits” and therefore not taxable?

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General aspects of payroll

Q53
Are wages being paid at at least National Minimum Wage / National Living Wage rates?

Q54
Does the client complete form P11D for all employees where appropriate?

Q55
Have Class 1A NI liabilities been correctly calculated and paid?

Q56
Were the year end forms submitted by the deadline?

Q56
IS an Auto-enrolment pension scheme in place?

Q56
If Yes – are the appropriate contribution rates being used?

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Directors

Q57
Directors have an Annual Earnings Period for NI so are treated diffferently from other employees. Are directors on an annual period? (Usually a "flag" is set in computerised systems)

Q58
Are any payments made which could possibly be classed as payments on account of remuneration, or in advance?

Q59
If Drawings are made on Directors Loan Account are there always sufficient funds available to avoid it becoming overdrawn?

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Construction Industry

Q60
Has the status of all subcontractors used been fully considered?

Q61
Does the client deduct the subcontractor's expenses from their gross amount?

Q62
Does the client ask the subcontractor for proof of the expenses?

Q63
Does the client provide a monthly statement to all subcontractors from whom they have made a deduction?

Q64
Does the client file a return to HMRC every month showing the amounts paid to subcontractors and the amounts deducted from those payments?

Q65
Does the client always complete and submit the monthly returns via RTI?

Q66
Has the client incurred a CIS filing penalty during the year?

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Potential Problem Areas

Q67
Does the client have people who are treated as self employed, but who are in reality employees?

Q68
Have "casual labour" payments been treated correctly?

Q69
Have there been any third party payments or benefits provided for employees or directors?

Q70
Are there any "tips" in the business and are these treated correctly?

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Thank You


You have completed this questionnaire!

Thank you for taking the time to answer this questionnaire

 

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