Where an employee acquires employment – related
securities, the employer may need to estimate their value in order
to work out the figure on which to operate PAYE. Where employers
want to check whether HMRC thinks that their valuation is a
‘best estimate’, they can contact SAV for a ‘PAYE
Healthcheck’.
Employers should provide full details of the transaction and
make it clear that they want their valuation checked for the
purpose of operating PAYE.
It will not normally be possible to fully investigate the
value in the timescale within which the company must operate PAYE.
SAV will therefore provide no more than an informal
‘healthcheck’. This will enable the employer to meet
its obligation to operate PAYE at the right time on an amount which
is the best estimate that can reasonably be made of the amount
chargeable to tax. When PAYE is operated on the basis of an
estimated figure, neither HMRC nor the employee is obliged to
accept that valuation when working out the final liability.
Where a valuation is complex, it will not usually be
possible to consider the request before PAYE is due.
PAYE ‘Healthcheck valuations’ will be considered
by designated valuers.
| Additional Guidance: SVM150000 |
