HMRC’s Large Business team is rolling out a new initiative, the Employer Duties Visiting Programme (‘EDVP’).

Below, we break down everything you need to know about the programme, including practical next steps to help you prepare.

What is the EDVP?

The EDVP is a new visiting programme review introduced by HMRC’s Large Business team, believed to focus on how businesses manage employee end-to-end expenses and the benefits reporting processes.

HMRC has identified employee expenses and benefits as a common source of error, and is dedicating specialist resource to reviewing compliance in these areas across large businesses.

While the EDVP appears separate from the recently publicised Project Snowball, both reflect a broader trend towards increased HMRC focus on large business compliance.

Will my business have an EDVP?

HMRC is expected to conduct these reviews across a number of large businesses, particularly those falling under its Large Business unit, which broadly covers businesses with an annual turnover above £200m. Businesses below this threshold are unlikely to receive an EDVP.

What should I expect if I do have an EDVP?

While only a small number of EDVP have been conducted so far, HMRC typically begin by requesting copies of documented processes and procedures, before meeting with key stakeholders to walk through the business' end-to-end processes in detail. This may include an in-depth look at how information is gathered and how the PAYE Settlement Agreement (PSA) annual computations are prepared and submitted, covering potential tax and National Insurance Contributions (NIC) exemptions and the use of technology within the process. In such cases, HMRC may also request copies of historic PSA computations without supporting calculations, including a sample of expense claims.

Some EDVP have focused on specific areas such as the PSA, while others have covered employee expense and benefit processes and controls more broadly.

Although the EDVP currently focuses on employee expenses and benefits, it may evolve over time to cover all areas of Employer Duties.

How can I prepare for an EDVP?

HMRC has suggested that businesses selected for the visiting programme may wish to carry out their own assurance checks beforehand.

Large businesses should use this as an opportunity to review existing processes and procedures and make sure they're well prepared for any HMRC engagement. Ongoing review should already form part of every large business's risk assurance process, particularly given broader obligations such as those under the Senior Accounting Officer (SAO) regime.

What should you do next?

Businesses should consider reviewing their end-to-end processes for managing employee expenses and reporting employee benefits, ensuring these are clearly documented and aligned with actual working practices. Testing these controls, alongside validating data through sample checks, can help identify any potential issues early.

While the EDVP will result in additional HMRC engagement, it also gives businesses the chance to strengthen their compliance frameworks and address issues proactively. Being well prepared will not only reduce the risk of challenge but also ensure smoother engagement with HMRC.

If you have any questions about the EDVP, or need any help preparing, please get in touch with David Williams-Richardson or your usual RSM contact.

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