Tax Investigations

Our team of experts at A&M Accounting Services can assist you with all tax related issues when you need it most. If you have been subject to a HMRC tax investigation or enquiry, we are here to help.

Tax investigations or HMRC enquiries can be a very stressful time for you or your business. We pride ourselves in offering expert advice to support and guide you through your case.

There are several reasons why HMRC might investigate a tax return, these vary from random checks to more in-depth investigations. A&Ms experienced team will work closely with you to gather all relevant information to proficiently handle the enquiry. Our goal is always to ensure we can achieve the very best outcome for you.

FAQs

There are different types of tax investigations, ranging from routine checks to more in-depth investigations. Here are some common reasons why HMRC might initiate a tax investigation:

  1. Random Checks: Sometimes, individuals and businesses are selected for investigation randomly as part of routine checks to ensure compliance.
  1. Anomalies or Discrepancies: If there are inconsistencies or discrepancies in a taxpayer’s financial information or tax returns, HMRC may launch an investigation to determine the cause.
  1. Tip-offs or Whistleblower Reports: HMRC may receive information from third parties, such as disgruntled employees or competitors, which prompts an investigation.
  1. Sector-Specific Focus: HMRC may target specific industries or sectors that are deemed high risk for tax evasion or non-compliance.
  1. Large Transactions or High Incomes: Individuals or businesses with high incomes or involved in significant financial transactions may attract HMRC’s attention.

During a tax investigation, HMRC may request documents, information, and explanations related to a taxpayer’s financial affairs. This could include records of income, expenses, tax returns, and any other relevant documents. The investigation process can vary in duration and intensity, depending on the complexity of the case.

Any person or business can be investigated by HMRC. Keep in mind that the reasons for an investigation can vary, and sometimes it might be a routine check rather than an indication of suspected wrongdoing. Some investigations may confirm that the taxpayer is fully compliant with tax laws. However, if HMRC identifies errors, omissions, or intentional tax evasion, it can result in penalties, fines, and, in extreme cases, criminal prosecution.

Self-Assessment Tax Returns: Generally, HMRC has the right to open an inquiry into a self-assessment tax return within 12 months from the filing date. For example, if you filed your tax return for the tax year ending on April 5, 2022, HMRC would normally have until April 5, 2023, to open an inquiry.

Discovery Assessments: In certain situations, HMRC may open an inquiry into a tax return outside the usual 12-month window. This could happen if they discover that tax has been under-assessed due to a mistake or oversight. In such cases, HMRC can issue a discovery assessment within four years of the end of the tax year.

Enquiries into Deliberate Tax Evasion: If HMRC suspects deliberate tax evasion, there is no time limit for opening an inquiry.

As part of the investigation/enquiry process we will act as your agent, and can speak to HMRC on your behalf, meaning you will not need to speak to them directly.

A&Ms experienced team will work closely with you to gather all relevant information to proficiently handle the enquiry. Our goal is always to ensure we can achieve the very best outcome for you.

Need some help with your tax enquiry? Call us today!