HMRC tax investigations have become much more common in recent years, particularly random compliance checks that may happen anytime without provocation. Our tax investigation specialists can help your business get through unscathed and ensure you stay on the good side of HMRC.
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Receiving an HMRC tax investigation letter and knowing that your tax affairs will be scrutinised can be frightening. Accepting and facing the situation head-on is the best way to deal with it. We highly recommend taking specialist advice on responding to requests from HMRC for information and documentation.
We can help by preparing and presenting information in the correct formats, communicating with HMRC, attending meetings with HMRC on your behalf, and more.
We have dealt with many individuals and companies who have experienced different forms of tax investigations, including Income Tax, Corporation Tax, VAT, PAYE, and others.
If you're the subject of an investigation, or even if you want to proactively disclose an issue to HMRC, our team has the knowledge and experience to help.
We have significant experience in assisting clients who are either subject to an ongoing HMRC tax investigation in relation to undisclosed offshore income, assets and gains, or those who wish to make a voluntary disclosure.
We can liaise with HMRC to resolve matters as amicably and quickly as possible while keeping you fully informed of progress throughout and ensuring potential penalties are mitigated as practically possible.
Tax investigations with HMRC can be a timely and costly process. We work with Markel to ensure that fees relating to a tax investigation are covered.
If you're facing an HMRC tax investigation, seeking an experienced adviser's support should be your first course of action.
Led by Amal Shah, our team has the experience and knowledge of dealing with HMRC to negotiate settlements on your behalf and reach a quick resolution.
To arrange a consultation, please fill in the form or call the number below.
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Our tax investigation experts have substantial experience managing all types of HMRC audits, from aspect enquiries and random checks to full investigations.
We work closely with limited companies, sole traders and PLCs to keep their accounts in good order and give no reason for HMRC to flag unusual activity.
We understand the stress that naturally comes with the prospect of an investigation, particularly Section 9A, COP8 and COP9 notices. Our advisors can help restore your peace of mind and allow you to focus on running your business. Plus, our team includes ex-HMRC staff who have experience as tax inspectors and are familiar with the investigation process.
When it comes to minimising risks and resolving discrepancies, there's no substitute for expert knowledge and careful negotiation – and that's where Gerald Edelman can be an invaluable ally for you.
HMRC states that compliance checks are often opened where it believes there may be an error or discrepancy in a tax return. For example, unusually large claims, significant changes in reported figures or information that does not appear consistent with previous submissions may attract further attention.
Other factors that may lead HMRC to review a return include:
Being selected for a compliance check does not necessarily mean anything is wrong. HMRC may simply require further information to verify that the correct amount of tax has been reported and paid.
The more serious HMRC believes an issue may be, the further back it can investigate.
In cases involving suspected deliberate behaviour, HMRC can generally investigate up to 20 years into the past. Investigations involving careless errors can typically go back up to six years, while enquiries relating to innocent errors are usually limited to four years.
The exact period will depend on the circumstances of the case and HMRC’s view of the behaviour that led to the error.
If you are an existing client, we offer tax investigation insurance that can cover our professional fees should you become subject to an HMRC compliance check, enquiry or tax investigation.
Exactly how long a tax investigation will take depends on the scope of HMRC’s case and the volume of paperwork involved. It could take a few months or even up to a year, and HMRC could delay your case further by asking for additional information. However, depending on the nature of the case, there are various ways to reduce the amount of time it takes.
If HMRC suspects serious tax fraud, i.e. an individual or business has knowingly underpaid tax or overclaimed reliefs and grants, it may commence a Code of Practice (COP) 9 investigation. A letter is sent to the business or individuals concerned and offers them the chance to submit a full disclosure of their tax affairs under the Contractual Disclosure Facility (CDF). The recipient has 60 days to respond – they can accept or reject the COP9 offer.
Getting your response right is critical as this process can lead to criminal prosecution eventually. If you have received a COP9 letter, we highly recommend seeking specialist support from a tax investigation expert.
HMRC carries out thousands of VAT inspections and compliance checks each year. If HMRC has contacted you regarding an inspection or enquiry, our specialists can support you throughout the process and help you understand your obligations.
We can liaise directly with HMRC on your behalf, assist with responding to requests for information and help ensure that any issues are dealt with efficiently and professionally, allowing you to remain focused on running your business.
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