The Working Tax Credit (Payment by Employers) Regulations 2002

Inspection of employer’s records

15.—(1) For the purpose of enabling the Board to be satisfied whether a relevant employer is complying with the provisions of these Regulations, he must, whenever called upon to do so by an authorised officer of the Board, produce the records specified in paragraph (2) to that officer for inspection, at such time as that officer may reasonably require and at the prescribed place.

(2) The records are—

(a) all wages sheets, deductions working sheets and other documents and records of any kind or description relating to the calculation or payment of the tax credits of his employees in respect of the tax years or income tax months specified by the authorised officer, or

(b) such of those wages sheets, deductions working sheets or other documents and records as may be specified by the authorised officer.

(3) The prescribed place for the purposes of paragraph (1) means—

(a) such place in the United Kingdom as the employer and the authorised officer may agree upon, or

(b) in default of such agreement, the place in the United Kingdom at which the documents and records referred to in paragraph (2)(a) are normally kept, or

(c) in default of such agreement and if there is no such place as is referred to in subparagraph (b), the employer’s principal place of business in the United Kingdom.

(4) The authorised officer may—

(a) take copies of, or make extracts from, any document produced to him for inspection in accordance with paragraphs (1) and (2), and

(b) remove any document so produced if it appears to him to be necessary to do so, at a reasonable time and for a reasonable period.

(5) Where any document is removed in accordance with paragraph (4)(b), the authorised officer shall provide a receipt for that document.

(6) Where any document is removed in accordance with paragraph (4)(b) that is reasonably required for the proper conduct of a business, the authorised officer shall, not later than seven days following the date on which the document was removed, provide a copy of the document, free of charge, to the person by whom it was produced or caused to be produced.

(7) Where a lien is claimed on a document produced in accordance with paragraphs (1) and (2), the removal of the document in accordance with paragraph (4)(b) shall not be regarded as breaking the lien.

(8) Where records are maintained by computer, the person required to produce them for inspection must provide the authorised officer with all facilities necessary for obtaining information from them.

(9) For the purposes of paragraphs (1) and (2), the employer must retain the wages sheets, deductions working sheets and other documents and records referred to in those paragraphs for not less than three years after the end of the income tax year to which they relate.