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Tax Investigation

HMRC Tax Investigation Advice and Tax Investigation Specialists

HMRC tax enquires and tax investigations are becoming increasingly common and can have a significant financial cost if handled incorrectly.

Even if you have filed your taxes timely and properly the HMRC might launch a tax investigation at any time through random selection. This can be expensive and time-consuming, if not handled properly. However, there are certain factors that will instigate HMRC to look into your affairs:

You’ve made errors regularly on your tax returns
There has been a significant drop in margins between years
Inconsistency with industry earning standards
Questionable director’s pay
Omission of income

Whilst the above are legitimate grounds for HMRC enquiry into your business affairs, do remember you could be selected at random, even if your accounting, bookkeeping and submissions have been above board.

HMRC can look back up to 20 years in certain scenarios including cases where they suspect tax has been evaded. With the use of sophisticated software, they can cross reference different sources of data relating to business and personal income to identify inconsistencies from tax returns quite easily to launch an investigation.

If you are under investigation by HMRC, our specialist tax investigation team can manage the full process on your behalf or advise you on the best strategy to approach. Expert technical knowledge, experienced negotiation and advice can often make a substantial difference to the ensure you avoid or minimise tax liability, penalty and charges.

HMRC Tax investigation advice
Accelerated payment and follower notices
Common Reporting Standard (CRS)
IR35 Investigations
Corporate tax investigations
VAT and PAYE inspections
Voluntary tax disclosure
HMRC compliance check
Undeclared rental income / HMRC Let Property campaign
Income tax investigation, including Section 9A TMA 1970, Code of Practice 8, Code of Practice 9 and Code of Practice 11

How can I avoid a Tax Investigation?

Apart from the minority of genuinely random inquiries, HMRC will commence an investigation for a reason. Sometimes this will be due to information that you have provided them or lack of, incorrect filing and if they suspect there are ill motivations behind providing misinformations.

Can I go to prison for Tax offences?

Criminal investigations are reserved only for the most grievous cases of tax fraud. HMRC prosecute approximately 1000 taxpayers every year.

Will HMRC give me time to pay any owed tax?

Yes within reasons. Your adviser should be able to arrange a time to pay as part of any settlement or negotiate directly with HMRC debt management.

How long will my tax investigations take?

The short answer to this would be “it varies”. A local compliance check of self-assessment could be settled within 6 to 8 weeks. However, investigations involving serious fraud or disclosures can take several months. This also depends upon the competence and motivation of the tax investigation specialist you appoint.

How far back can HMRC Tax investigation go?

That rather depends on the nature and scale of the irregularities committed. In some circumstances, HMRC may want to go as far back as 20 years to obtain information and documents.

How will I know if I am being investigated by HMRC?

HMRC will notify you of this in writing, but if it decides to formally investigate you, you may receive a letter from one of its departments asking you for more information. The department contacting you will be determined by the type of fraud that HMRC suspect.

Why have I been selected to HMRC Tax Investigation?

There are certain factors that will instigate HMRC to look into your affairs:

You’ve made errors regularly on your tax returns
There has been a significant drop in margins between years
Inconsistency with industry earning standards
Questionable director’s pay
Omission of income

Even if you have filed your taxes timely and properly the HMRC might launch a tax investigation at any time through random selection.

Experts Accountants for Small & Medium Businesses in Whitechapel, Brick Lane London.

Muhit & Co Certified chartered accountants is a widely-established firm which has a network that spreads across London with an office located at Whitechapel in Central London . The firm has been established since 2004 with a team of qualified accountants and tax specialists who have various industrial experience. We work with a large number of local businesses, sole traders and Individuals helping them achieve their goals through our pro-active and informative service.