Tax Investigations and Tax Enquiries
Need help fighting the Taxman?
Anyone who has faced an HMRC tax investigation will tell you that it was one of the most stressful times in their life, even if they believe they have not done anything wrong.
Whilst HMRC has a responsibility to investigate the tax affairs of companies in the UK, it is unfortunately a rather stressful time for business owners and company directors. There are a few different types of HMRC tax investigations, and they have historically investigated companies that have submitted incorrect, incomplete or inconsistent business records, however, now also investigate businesses at random; this means that any business, limited company or sole trader can be investigated at any point.
If your business is subjected to a full tax investigation, you will need the assistance of tax investigation experts, as they will know how HMRC works, will be able to offer specialist advice, and help ensure that the investigation is as swift as possible. At Hayvenhursts Chartered Accountants in Cardiff, we have a specialist tax team that are on hand to help when you receive any tax investigation letters, and can help you get through your business’ tax investigation, talking to you through the enquiry process and letting you know what to expect. We also ensure that HMRC keeps to their own internal guidelines during the investigation and don’t over step the mark.
If you’ve been told that you business will be investigated for tax purposes by HMRC and require the help of our tax investigation service, then get in touch with our tax experts at Hayvenhursts by calling 02920 777 756 or contacting us here today.
Types Of HMRC Tax Investigations
There are a few different types of tax investigations, and each type will have varying information investigated and vary in intensity. HMRC will contact you via letter or phone if your business is being investigated. Taxes under scrutiny
Aspect Enquiries
These types of investigations focus on a particular aspect of a tax return, usually discrepancies or inconsistencies in the information on your return.
Random Tax Investigation
Random tax investigations are routine, random checks, that are not triggered by anything in particular. They can include investigations into your self-assessment tax returns, your business’s financial records or corporation tax, amongst others.
Full Tax Enquiry
Full enquries are thorough and complex investigations into your business’ tax affairs, and can be triggered by tax fraud, tax evasion or other tax issues such as non-compliance.
There are also another two types of checks that HMRC can undertake, which are more specific to the tax issue at hand.
- VAT Investigation – VAT investigations are carried out on businesses that HMRC suspect of VAT fraud, or VAT returns fraud (they may also investigate businesses that could be liable for VAT but haven’t registered).
- Employer Compliance Review – Employer compliance checks are investigations of PAYE employers to ensure that income tax and national insurance contributions are being correctly calculated.
Stages Of An HMRC Tax Investigation
A full tax investigation by HMRC is a complex and extensive affair and can take a long time. The investigation process usually follows the same few steps:
Formal notification
Firstly, your business will be formally notified by HMRC, usually in the form of tax investigation letters. The letter will let you know what type of investigation you are being subjected to, what documents or information the tax inspector requires, and when the information needs to be submitted. The tax inspector may also request to pay you a visit.
Collating information
Next, HMRC will gather the wide range of information you have provided in order to assess your tax liability and conclude the enquiry. The assigned tax inspector may also interview the business’ company directors or your accountant, and review any supporting information provided.
Further information
The tax inspector will continue to liaise with you and your accountant in order to clarify information, request any other documents, such as expense receipts, and let you know how the investigation is progressing.
Assessment
Once HMRC has received all the necessary information, they will assess your business’ tax for discrepancies and errors. They will either decide that everything is correct and up to scratch, that you’ve overpaid in taxes, or that you owe in taxes. They will also calculate any adjustments, and decide on any penalties or interest required.
Conclusion
Upon the conclusion of the tax investigation, your business will receive a letter detailing what was found, and your next steps. If you agree with the findings, the investigation will be complete and your case will be closed. In the case you do not agree, you may appeal HMRC’s findings which are often handled during tax tribunals.
Our tax investigation service at Hayvenhursts can assist you during every step of your tax enquiry, giving you peace of mind in knowing that your investigation will be as streamlined and straightforward as possible. If you require our essential tax advice should you be notified of an impending investigation, or you wish to dispute the decision of your recent tax investigation, then give our expert tax accountants a call on 02920 777 756 or send us an enquiry online here today.
Tax Investigation Penalties
As most cases of tax non-compliance are due to administrative errors, inaccurate tax returns or the delayed filing of returns, they are considered civil investigations. There are various penalties HMRC can seek to impose following an enquiry for undeclared income, tax return inaccuracies or failure to maintain correct records. As well as having to pay any tax that you owe, they can also seek penalties up to an amount equal to the tax, essentially doubling your tax bill, along with interest on any late payments.
In the instances that HMRC suspect your business of more serious fraud occurrences, such as corruption, money laundering or persistent tax evasion, then they can hand your case over to the Fraud Investigation Service, who can instigate a criminal investigation and result in legal issues for you and your business.
At Hayvenhursts, our expert tax investigation service can aid in your tax investigation by offering professional advice that will both streamline your investigation and help minimise any penalties that may be imposed on your business. If you’ve had notice of a tax investigation for your business, or need help submitting information to HMRC, then get in touch with our tax accountants by calling 02920 777 756 or contacting us online here today.
Anti-Investigation Scanning Checks
Whilst random investigations can mean that anyone can come under enquiry, you can help your business to avoid the chance of an investigation into your affairs for other reasons. At Hayvenhursts, we know what often triggers HMRC to give rise to enquiries when submitting tax returns to them.
Our expert tax accountants undertake an anti-investigation scanning check on each tax return or set of accounts that we submit to HMRC, in order to identify any areas that may lead to an enquiry before they are submitted without explanation. This significantly helps to minimise the chances of you being subjected to any type of investigation or tax issues.
Minimise the chances you are subject to a stressful, costly and time-consuming HMRC investigation and at the same time ensure that your tax return is as tax-efficient as possible and all allowances have been fully utilised by engaging the essential tax advice services of Hayvenhursts Chartered Accountants. To discuss engaging our expert help or tax investigations service in Cardiff, call our accountancy team on 02920 777 756 or send us an enquiry online here today.
Other Tax Services From Hayvenhursts
At Hayvenhursts, our personal and business accountants are experts in all things tax, offering a wide range of other tax services:
- Tax Disputes
- Tax Returns and Self-Assessments
- Tax Planning
- Personal Tax Affairs (including income tax)
- VAT Registration
- VAT Returns
- VAT Healthcheck
- VAT Planning and VAT Disputes
If you are interested in any of the tax services we offer at Hayvenhursts in Cardiff, be it business tax or personal tax, then get in touch with our expert tax accountants. For a free consultation regarding any of your tax-related queries, give us a call on 02920 777 756 or submit an enquiry online here today.
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