Is HM Revenue and Customs scrutinising incentive schemes?

HM Revenue & Customs (HMRC) is reviewing the tax paid by employers on incentive schemes, according to an industry insider from a motivation provider.

The source told Employee Benefits that HMRC has extended the scope and boosted the frequency of investigations of employers running incentive plans. But, HMRC has denied this.

The insider claimed HMRC is asking for detailed lists of staff who have received incentive vouchers or gifts and their value, as well as the administrative payments made, to ensure the correct tax is paid.

He said: “There is a grey area as to whether admin charges are taxable. Recently HMRC has been requiring tax on this and demands are coming in thick and fast.”

The source also claimed PAYE inspections by HMRC have risen “dramatically”. A spokesman for HMRC said: “This accusation is a red herring. There has been no increase in PAYE inspections.”