Are you committing tax fraud?

Written by  Sunday, 07 October 2012

I'm sure that most Charities would be horrified at the thought that they could be committing tax fraud through their payroll. But according to the Taxman many charities could well be doing just that.

Following the release of the HMRCs Code of Practice 9 (COP9) the definition of the word fraud now has a new meaning. Payroll fraud conjures up images of dodgy dealing and deliberate deception to gain an advantage.

Under COP9 charities that underpay tax fall into one of two camps. Either they have made a mistake or they are committing a fraud. There are no grey areas or middle ground, if you have underpaid tax and it wasn't a mistake you are committing a fraud.

So, ignorance may no longer be bliss. Failure to correctly apply the latest PAYE & National Insurance legislation whether deliberate or not can now be deemed fraudulent. And with HMRC also taking a tougher stance with a greater threat of criminal proceedings we are advising that all charities undertake a review of their payroll processes.

There are of course resources available to help you. The two most common are to use an external review from your accountant, tax adviser or payroll expert or to go a stage further and to outsource your payroll compliance. Both of these routes have benefit that you are taking all reasonable measures to avoid mistakes by buying in the appropriate expertise.

At Dataplan we are now also offering a UK first protection package for our payroll clients. A simple low fee, payable monthly, allows you access expert support on PAYE matters. Our Fee Protection Package includes a free PAYE helpline, a free healthcheck and expert on site support from our former Inspector of Taxes pre, during and post any HMRC compliance visit.

To find out more about payroll compliance, employer compliance reviews, payroll fraud and options to minimise risk please get in touch

Dataplan Payroll Limited t/as Dataplan Charity, 1 Prince Albert Gardens, GRIMSBY, DN31 3AG.
Tel: 03331 123456 Email:

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