HMRC Tax
Investigation

Your Tax Affairs with Taxman

For various reasons, HMRC may decide to investigate multiple aspects of your business to determine any tax payment or compliance discrepancies. Call our specialist team for a quick chat.

HMRC Tax invetigation

WHY HMRC TAX INVESTIGATIONS START

Some of the reasons will include mistakes made on your tax returns (regularly), HMRC receives a tipoff, your financial position fluctuates above ‘normal’ margins, business shows unprofitability for several years, expenses and earnings do not correlate to industry, directors and management earning less than employees, omitting of income.
Any activity which may be perceived as suspicious can also place you under tax investigation, such as having any business dealings with companies or businesses which themselves may have been found guilty of tax crimes, or you may just have been randomly selected. Apart from that, HMRC may get data from their software CONNECT about unusual transactions in your bank, or your bank may report unusual transactions to HMRC can also be the start of HMRC Tax Investigation. If you have received a letter from HMRC fraud service, do not delay and call our team to get professional advice. 

Who We Are ?

We Are Professional Accountants, Tax Advisors and Business Consultants

Our team consists of highly qualified accountants, Ex HMRC Tax Inspectors and industry known business consultants

What we do

  • Aspect Tax Investigation
  • Full Tax Investigations
  • Random Tax Investigations
  • Disclosure of tax avoidance schemes
  • Tax Appeals
  • Specific Services and Expertise

How can we help

  • Experience Counts
  • Business Operational Knowledge
  • Proactive and Supportive Approach
  • Facts and Only Facts: Evidence
  • Follow UK and Tax Law
  • Excellent Negotiations Skills

Choose the best Tax Investigation Accountant

Send our HMRC Tax Investigation Specialists a message, and we will discuss your case on the phone and provide you with vital information to help you before you decide to present your case to HMRC.

FAQs

We have tried to answer some of the frequently asked questions for taxpayers, individuals and businesses. However, if you need any further help or explanation, give our team a call for free advice.

HM Revenue and Customs frequently conduct investigations in the UK. It is an authorized inquest on your history of tax payments, and the severity of the inquiry will be entirely case dependent. Probes for tax investigations can be due to multiple reasons, such as:
  • Late filing of your returns
  • Your income has fallen by a significant amount
  • Inconsistencies between different returns
  • Incorrect information is given
  • A tip-off that HMRC has received
  • The result of a random check
HMRC are very disinclined to reveal any details, so finding out and identifying why the tax inquiry is taking place could be vital in helping you deal with it more efficiently.
Every case is different during a tax investigation, and depending on the facts of the individual case, this will vary and determine the time scale. For example, in certain situations, the HMRC might want to acquire documents and information up to 20 years, but it also may be a lot less depending on case facts. HMRC investigations are not only expensive, but they are also very time-consuming. This may cause a lot of everyday issues for most people, especially if HMRC want to investigate a number of years. Therefore, the taxpayer needs to find a solution quickly to avoid unpleasantly and over calculated assessments.
If you are under investigation, you should check your books and records and find out if there have been any anomalies or mistakes, resulting in additional tax liability. No tax inquiry is straight forward as it seems. It may start from a simple compliance check and, if not appropriately addressed, can turn into a full investigation. You should talk to your accountant or advisor and include any losses that you haven’t declared for the past years. Remember, if you do not cooperate with HMRC, they have the authority to make the best judgment assessment, which can be more than the actual tax you owe.
Penalties are calculated on several factors and relevant to the year, which is under investigation. For example, a tax penalty can range from 35% to 200% of tax payable for deliberate conduct. It will also depend on your cooperation with HMRC to provide information and calculate untaxed income calculations.
It depends on the scope of inquiry or investigation and the type of letter you have received. For example, simple compliance checks can be finalised in one or two meetings, whereas investigations like Code of Practice 9 may take eight months to a year to finish. If proper records are not available, time spent to collect information will add up to the investigation time. 

Not answered above?

If you need advice regarding your personal circumstances, please call our office or book an online appointment.

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