Tax Investigations Accountants
Need help fighting the Taxman?
Tax Investigation Specialists
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.
Looking for Tax Investigation Advice?
Having an accountant who understands how HMRC operates and can defend your case effectively is essential if you are selected for a random inspection. Our tax investigation accountants can provide you with exactly that. We make sure 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. Our tax investigation specialists 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 main groups at risk include:
- Individuals
- Self-Employed Professionals (including Sole Traders)
- 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
HMRC can impose a range of penalties following an enquiry into undeclared income. In addition to paying the tax owed, they may apply penalties equal to the tax itself, effectively doubling your liability. Interest on any late payment is also added.
Our expert team of tax investigation accountants can provide clear tax advice and help you reduce these penalties wherever possible, ensuring you are supported throughout the process.
Anti-investigation Scanning Checks
Our tax investigation advice can be beneficial for anyone who may randomly come under enquiry. 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.
HMRC enquiries typically go back four years if the mistake is considered innocent, six years if deemed careless, and up to 20 years in cases of suspected 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 tax investigation accountants can assist you in managing your personal or professional finances, please get in touch.