HMRC Tax Investigations

HMRC Tax Investigations

Tax investigations can often be intimidating and extremely stressful so it is important that you seek expert advice as soon as possible to help protect yourself. We have dealt with many clients who have experienced differing levels of tax enquiries or investigations, ranging from Income Tax and VAT, through to PAYE investigations.

There are a number of reasons why HM Revenue & Customs will open an enquiry or investigation into your tax affairs:-

  • Random selection
  • Business sectors are occasionally targeted as a whole to ensure compliance within that sector.
  • Targeted enquiries – HMRC are increasingly using automated software to risk assess Tax Returns that have been submitted using defined criteria. Cases which are scored as having a high risk are much more likely to be targeted for enquiry. The criteria used can range from simple things like low drawings from the business, fluctuations in gross profit percentages, or fluctuations in certain expenses.
  • HMRC also have dedicated enquiry teams who perform risk assessment of certain sectors or individual businesses. They have access to a central database containing a wealth of information from a wide variety of different sources which can lead them to target specific individuals or businesses.

HM Revenue & Customs (HMRC) do perform general visits on a routine basis particularly in relation to PAYE and VAT in order to check your compliance with current legislation. Whilst these are not full tax investigations they should be handled with care to minimise any risk of them developing into a full tax investigation.

Whilst you may be capable of dealing with a tax enquiry or investigation yourself we will be happy to get involved and give you the benefit of our experience and make sure that the enquiry is as quick and painless as it can possibly be.

We offer a tax fee protection insurance policy to our clients to provide protection against fee costs incurred in defending against any HMRC enquiry (detailed terms and conditions apply in connection with this insurance cover).

For help and further advice on any aspect of enquiries or tax investigations please contact us.