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Brighton Office: 01273 202311

Wimbledon Office: 020 8946 1212

Tax Investigation Accountants, London 

Worried about the accountancy fees of a tax investigation?

Here at Hartley Fowler, we’re pleased to provide a comprehensive range of tax investigation services In addition, we also recommend using our unrivalled tax enquiry fee protection service. Specifically designed to shield you from the accountancy fees linked to a tax investigation, this service ensures your peace of mind during a potentially stressful situation.

Why Does HMRC Investigate Business Tax Affairs?

Businesses are investigated by HMRC for several reasons, including:
Random Checks
HMRC conducts a number of routine tax audits each year. Therefore, you may find yourself subject to an investigation, even if your affairs are correct and up-to-date.

Errors Found in Tax Returns
Inconsistencies or errors found in your Corporation or Self-Assessment Tax return may lead HMRC to undertake an investigation.

Unusual Business Activity
Through the use of data analytics, HMRC can identify inconsistencies across tax years, prompting them to trigger an investigation.

Third Party Information
HMRC may receive information that prompts an investigation from third parties, such as the Student Loans Office or the Land Registry.

What Does a Tax Investigation Involve?

The tax investigation process typically involves several key steps:

  • If an investigation is required, HMRC will send you a formal notice, requesting information regarding you/ your company/ your partner. This will need to be provided by a certain date.
  • Tax investigators will review your businesses’ accounts and records.
  • They may then need to ask you some questions – this could be completed over the phone, via email or in person.
  • If they have established that your lifestyle does not match your reported income, they may then deem it necessary to ask about your personal finances.
  • Once the investigation has concluded, you will be notified of the outcome.
  • You may be charged penalties and interest if any tax has been undeclared.

For further tax investigation advice and guidance, please get in touch with our team.

How Long Does an Investigation Take?

The length of time an HMRC tax investigation takes will depend on the number of areas of a business being examined. If it’s just one aspect of the company, investigations tend to last around six months. If HMRC has deemed a Full Enquiry necessary, it could take up to 18 months or more.

How often do HMRC investigate self-assessment tax returns?

On average, every self-employed tax payer will have their finances inspected by HMRC once every ten years. Of those taxpayers, only a small number will be investigated. However, that number will increase if HMRC suspects those they do investigate are being underpaid, either deliberately or unintentionally.

What is a Tax Fee Protection Service?

Anyone can be subject to a tax investigation. Even if you do submit your returns on time and are confident in the accuracy, you may still be forced to undergo an enquiry. Even for small businesses, these investigations can take several months. If HMRC does begin an enquiry into yourself or your business, a tax fee protection service can safeguard you from accountancy fees associated with an HMRC enquiry, limiting the stress associated with an investigation.

Why Choose Tax Enquiry Fee Protection?

HMRC can investigate income tax and corporation tax payers for a variety of reasons, as well as completely at random. With the ever-increasing risks of full tax enquiries and investigations, it’s worth considering protecting yourself from the associated accountancy costs with a tax enquiry fee protection policy. Engaging a reputable accountant to deal with a tax investigation can be costly, as it often involves a substantial amount of work. Although our pricing is fair and reasonable, the process can take some time and fees can quickly add up – this is where tax investigation protection comes into play.

With tax enquiry fee protection, you can get cover for the following:

  • Self Assessment enquiries
  • VAT enquiries
  • PAYE and benefits enquiries
  • IR35 enquiries

Even if HMRC finds nothing as a result of any investigation, you will still have incurred unexpected professional fees to pay as a result. While we cannot prevent you from being investigated by HMRC, we can help to ensure that you recieve the best possible support and advice. Tax investigation protection means that you needn’t worry about the cost, by alleviating the financial burden.

Next Step: Enlist the help of our tax investigation accountants

If you’d like to find out more about our tax investigation services, or have any questions about tax enquiry fee protection, please call today. Alternatively, we’re happy to discuss your specific situation at an initial free consultation.