Tax Enquiries and Investigations

“HMRC can investigate businesses at random or for a specific reasons – and the accountancy costs dealing with an investigation can mount up.”

Ahmed Akhtar
Associate Accountant

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Tax Disputes

It’s an unfortunate fact of business life that from time to time there will be disagreement between the taxpayer and HMRC. Sometimes it is the facts of the case that are in question but it is also often the legislation itself that is in question. Tax isn’t always black and white and where this is the case we are happy to argue your case in the strongest possible terms.

As a taxpayer you have many rights and we will ensure they are never forgotten by HMRC.

Disputes can arise in all sorts of areas outside of full enquiries and investigations including…

  • Employment status disputes
  • Repairs versus capital disputes
  • Private usage adjustments
  • Capital allowances – is it plant or property?
  • Settlements legislation – the classic husband and wife company scenario
  • IR35
  • Valuations for tax purposes
  • Is it a trading activity?
  • VAT segregation of businesses to avoid registration
  • Employee benefit disputes

We have the specialist tax knowledge to assist with a wide range of tax disputes.

Tax Enquiries and Investigations

These days, you may well come under enquiry by HMRC through no fault of your own or of your accountant. HMRC now investigates businesses at random as well as for specific reasons. A full investigation is not a pleasant experience for anyone, particularly without expert defence.

If you are selected at random, you need an accountant who knows how HMRC works and thinks and is prepared to fight your case. We will talk you through the enquiry process, ensure that you what to expect and support you throughout.

Tax investigation Penalties

There are various penalties HMRC can seek to impose following an enquiry for undeclared income. As well as having to pay the tax, you can find them seeking penalties up to an amount equal to the tax – hence doubling your tax bill. Interest on the late payment of the tax can also be part of the arrangement. We can help you to try and minimise these penalties.

Anti-investigation Scanning Checks

Whilst with random investigations anyone can come under enquiry, you can help to avoid the chance of an investigation into your affairs for other reasons. We know the triggers that can give rise to enquiries, if not fully explained to HMRC when submitting your returns to HMRC in the first instance.

Every tax return or set of accounts we submit to HMRC goes through an anti-investigation scanning check to identify any areas that may lead to an enquiry before they are submitted without explanation. This really does help to minimise the chances of you being on the wrong end of an enquiry.

Tax Investigation Fee Protection

Worried about the accountancy fees of a tax investigation?

HMRC has powers to investigate income tax and corporation tax payers at random.

With the ever increasing risks of full tax enquiries and investigations, it’s worth considering protecting yourself from the accountancy costs of dealing with it as the amount of work involved is often substantial.

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 unexpected professional fees to pay as a result.

Whilst we cannot prevent you from being investigated by HMRC,  we can help to ensure that you get the best possible support and advice without having to worry about the cost.

If you would like to find out more about our tax investigation service, please do get in touch.

 

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