Tax Investigations Accountants
Need help fighting the Taxman?
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 investigation advice 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. 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. We will take the time to talk you through the enquiry process, what to expect and support you throughout the entire process.
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 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
With random investigations, anyone can come under enquiry. However, you can minimise the chance of an investigation into your affairs for other reasons. We know the triggers that often give rise to enquiries, if not fully explained to HMRC when submitting your Tax Return.
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 investigated.
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, being investigated by HMRC is incredibly unlikely. With a high volume of tax returns to assess each year, conducting thorough audits for all is impractical. As a result, 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 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 investigation, you will receive a letter notifying you and requesting additional information. This communication serves to inform you of the investigation’s start date and outlines the steps you need to take in response.
Generally, 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 being investigated by HMRC. To learn more about how we can assist you in managing your personal or professional finances, please get in touch.