Tax Investigations

What is a HMRC tax investigation specialists and why am I being investigated? 

HMRC tax investigations in the UK is conduct by HM Revenue and Customs (HMRC). It is the severity of an investigation being completely dependent on the case. There can many reasons for HMRC investigation and inquiries, for example;

• Following a tax return;
• As a result of a mistake or misunderstanding;
• Conflicting information from another source or whistle-blower;
• A random check;
• Or, because there is information which is incorrect.

The most important thing is to identify the type of the tax inquiry of how best to deal with it. Sometimes identifying the reasons behind the tax inquiry. HMRC will reluctant to disclose very much detail at the outset.

How much tax will I have to pay?

Put simply, how much corporation tax you have to pay depends on whether tax has in fact been underpaid. If so, HMRC will want it paid. However, a tax investigation inquiry will seldom as clear cut as HMRC believe at the beginning. There will factual variations. sometimes technical VAT investigation issues and discover other issues that will mitigate the tax due.

How much paperwork will I have to produce?

Some cases can involve detail analysis of large volumes of financial records, bank statements and other documents. You may require assistance from a specialist tax lawyer to help you obtain, collate, interpret and present this. Alternatively, sometimes the quantity of paperwork can be contained if the investigation is very specific. So HMRC tax investigation time limit will depend on right paperwork.

Cooperate with HMRC tax team

It is crucial to cooperate fully with HMRC tax throughout the investigation process. This includes providing the requested information and records promptly and accurately.

Respond in a Timely Manner

If you receive any communications from HMRC during the investigation, respond to them promptly and thoroughly.

Consider a Disclosure

If you identify any errors or irregularities in your tax affairs, consider making a voluntary disclosure to HMRC. This may lead to reduced penalties and avoid potential legal consequences.

Review and Appeal

If you disagree with HMRC’s findings or conclusions, you have the right to challenge them through the appropriate appeal processes.

Get Protected Now with FZCO Accountants

Coming under tax enquiry by HMRC can a daunting and stressful experience. Our tax investigation specialists team has experience in addressing HMRC’s concerns. It will bring matters to a fair conclusion. Whilst keeping your direct involvement to a minimum so you can concentrate on the more pleasant things in life.

FZCO Accountants manage all stages of the process with HMRC meeting.  The clients concerns require through to gathering the information necessary to establish the relevant facts and presenting those facts to HMRC. The quantifying amount of any additional tax payment, negotiating with HMRC, where the facts are unclear or the technical position. It is open to alternative interpretation and ultimately concluding a final settlement with HMRC. It will also draw a line under the past and bring all of your tax affairs to up to date.

The areas we specialise in include:

• major investigations conduct by HMRC under Code of Practice 8 (“COP 8”), where fraud is not suspect but matters are complex and the potential outstanding tax is large. The eyes have now become fixed on landlords. 
• making voluntary disclosures to HMRC where omissions or possible omissions need to brought to HMRC’s attention – for instance: 

          – disclosures of omitted income from letting residential properties under the Let Property Campaign.

          – general disclosure through HMRC’s Digital Disclosure Service.

          – disclosures of complex matters to HMRC specialist technical teams.

• exiting and settling matters related to marketed tax avoidance arrangements
• advice on how to respond to HMRC “nudge letters” hinting – maybe wrongly – that you might have something to tell them about.
• Instruction of Tax Counsel, bringing appeals to the Tax Tribunal, appeal management and case support.
• Resolving HMRC investigations and making voluntary disclosures to HMRC with regard to furlough claims made under the Coronavirus Job Retention Scheme.

Tax investigations can be stressful and time-consuming, but with professional guidance and cooperation. You can navigate the process effectively and ensure a fair resolution. It is essential to be proactive and transparent in your dealings with HMRC to demonstrate your commitment to tax compliance. Therefore, you should seek advice from tax accountant with expertise in the relevant jurisdictions.