HMRC Tax Investigations are becoming increasingly common, with more and more people being caught up in them.
If you’re one of the unlucky ones, it’s important to know what to expect and how to deal with the situation.
Here’s what you need to know about HMRC Tax Investigations.
What is an HMRC Tax Investigation?
An HMRC Tax Investigation is an inquiry into your tax affairs by HM Revenue & Customs. Businesses and individuals can both be subject to Investigations.
HMRC has many different methods of conducting Investigations, but the most common is through a document review. This involves HMRC requesting information from you or your accountant and then reviewing it to see if there are any discrepancies.
Who is at Risk of an Investigation?
Anyone can be at risk of an HMRC Tax Investigation, but certain groups of people are more likely to be targeted.
The harsh reality is that even those who have done everything above board may still come under scrutiny from HMRC. They will nit-pick and find fault with tax calculations, no matter how thoroughly you have checked them yourself.
From ignorance errors to full-blown tax fraud, there is no limit to what they will investigate.
After all, their primary function in life is to ensure that UK citizens pay the correct amount of taxes.
The only way to avoid being one of 250,000 enquiries conducted by HMRC every year is by understanding how the investigation selection process works and keeping between lines.
What to Do if You’re Under Investigation
HMRC Tax Investigations can be a stressful and complicated process, but it’s important to remember that you have rights and options available to you.
If you’re being investigated, the best thing you can do is get professional help from a specialist HMRC tax investigation solicitors.
They will be able to give you the best advice on how to proceed and can represent you in dealings with HMRC.