ECH22555 - Yield Recording: Voluntary Disclosure

Where an employer makes a voluntary disclosure outside of a review the ECO should

• contact the person making the disclosure by telephone to,
• • establish the reasons why the error occurred and,
  • whether there are any other indications of risk.

If neglect is established during the call the ECO must

• follow the guidance at ECH8027.

If a voluntary disclosure

• brings into the doubt the employer’s operation of PAYE/NIC, or there is reason to believe that the disclosure is incomplete

the ECO should

• make a referral to RISK to prepare a SIP for a full or aspect review.

Where it is not appropriate to make a referral to RISK

• calculate and pursue the amount underpaid, including interest and penalty (where appropriate) via Class 6 contract settlement,
• claim the amount of the underpayment interest and penalty on ECS as an Employer Amendment,
• record the yield under broader coverage where appropriate.

If it is appropriate to carry out a full or aspect review the ECO should

• calculate and pursue the amount arising from the disclosure,
• calculate and pursue any other underpayments arising from the review,
• calculate and pursue interest,
• consider penalties,
• claim the underpayment and interest arising from the disclosure as an Employer Amendment,
• claim the underpayment and interest arising from other irregularities as part of the review yield on ECS,
• claim the amount of any penalties as part of the review yield on ECS.