ECH7401 - Review of Links with Large Business (RLLB): Introduction

The report of the Review of Links with Large Business was published in November 2006 and recommendation 6 highlighted the need to change the emphasis of the role of Employer Compliance in order to support Large Business.

The recommendation indicated that

“In the past businesses have found that Employer Compliance reviews were not always appropriately focused and the time and costs to resolve issues was disproportionate to the Tax/NIC at stake. A proposed new approach would be forward looking and based on system and control testing. Businesses would benefit from a more focused, efficient approach with a swifter resolution of issues and greater focuses on ensuring business processes are robust for the future.”

Since publication of the report work has been carried out to support the recommendation and the new approach will

• introduce a new risk assessment framework and develop processes so that better use is made of knowledge and information held by HMRC
• reduce the time taken to resolve enquiries
• develop a new approach to address low risk employers and
• focus on correcting errors in employers systems

Subsequent pages set out the processes that must be followed to manage employer compliance risk in large businesses.