Tax Investigations Accountants
Need help fighting the Taxman?
Looking For Tax Investigation Services?
HMRC investigates businesses at random, as well as for specific reasons. Unfortunately, through no fault of your own or your accountant, you may find yourself under enquiry by HMRC. A full income tax investigation can be a very stressful, disruptive and costly experience. Our expert defence and HMRC tax investigation service can minimise the toll on your time and finances.
Our Tax Investigation Services
If you are inspected at random, you need an accountant who knows how HMRC operates and is capable of defending your case. Our tax investigation services can provide you with exactly that. We make sure that HMRC’s investigators keep to their own internal guidelines, ensuring that they treat you fairly and proportionately. We also ensure that they have everything they need to complete their investigation as quickly as possible. During the tax investigation services, we will take the time to talk you through the enquiry process, what to expect and support you every step of the way.
Who Might Face an HMRC Tax Investigation?
Anyone who manages financial transactions, earnings or tax responsibilities in the UK might be subject to a tax investigation. The primary groups that may face a tax investigation include:
- Individuals
- Self-Employed Professionals (including Sole Trader)
- Business Owners
- Landlords
- Trustees
- Charities and Non-Profit Organisations
- Contractors
It’s essential to understand that not all tax investigations stem from suspicions of wrongdoing or external tips. HMRC conducts random checks as part of its routine processes, ensuring compliance across a broad spectrum of taxpayers.
Tax Investigation Penalties
There are various penalties HMRC can seek to impose following an enquiry for undeclared income. As well as having to pay the tax, they may seek penalties for an amount equal to the tax, thus doubling your tax bill. Interest on the late payment of the tax is also part of the arrangement. Our expert team of tax investigation accountants can help you minimise these penalties.
Anti-investigation Scanning Checks
Our tax investigation services can be beneficial to anyone that randomly comes under enquiry.
However, you can minimise the chance of a tax investigation into your affairs for other reasons. We understand the common triggers that can prompt enquiries if they are not properly explained when submitting your tax return.
As part of our tax investigation service, every Tax Return or set of accounts we submit to HMRC goes through an anti-investigation scanning check. The check will identify any areas that may lead to an enquiry before your Return is submitted without explanation. This helps to minimise the chances of you being involved in an HMRC tax investigation.
Next Step: Contact our Tax Investigation Accountants
Please contact us if you have any questions about our tax investigation service. Alternatively, if you are under enquiry and need tax investigation advice, please arrange a free initial consultation.
FAQs
For most taxpayers, an HMRC tax investigation is incredibly unlikely. With a high volume of tax returns to assess each year, conducting thorough audits for all is impractical. As a result, tax investigations typically take place in situations where there are clear discrepancies, anomalies, or perceived risks detected by HMRC, rather than as routine procedures.
During the tax investigation process, HMRC will audit your accounts and ask a series of questions. They may also request to visit you for an in-person meeting at either your home, workplace or accountant’s office.
If HMRC initiates a formal tax investigation, you will receive a letter notifying you and requesting additional information. This communication serves to inform you of the tax investigation’s start date and outlines the steps you need to take in response.
Generally, tax investigations usually take between 30 days and 18 months, but more extreme cases could take longer.
Tax investigations will go back 4 years if HMRC feel the mistake was innocent, six when it is deemed careless, and as far back as 20 years if they suspect tax evasion or fraud.
By keeping up-to-date financial records, paying your taxes on time and declaring all of your income and assets to HMRC, you’ll significantly reduce your chances of an HMRC tax investigation. To learn more about how our personal tax accountants can assist you in managing your personal or professional finances, please get in touch.