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HMRC Tax Investigations

HMRC Tax investigations may be either of full nature or just a selection part of your tax matter. 

Helping you through HMRC Tax Investigations - Total Tax Accountant

What are HMRC Tax Investigations

All UK tax payers should know that HMRC has a legal right to check your financial affairs at any point of time to make sure you’re paying the right amount of tax and also providing the right info determining this tax amount. If HMRC selects your business for HMRC investigation, you may receive an HMRC investigation letter or phone call in which they should inform you what type information they need from you. 

If you using the services of an accountant, HMRC may contact them instead of you directly.

HMRC tax investigations can be daunting, troublesome, stressful and expensive. It is always recommended to seek professional tax advice in such a situation. Total Tax Accountants has a proven track record of winning successful tax investigations for our clients and saving our clients thousands of revenue.


Some of the Reasons of Tax investigations

A company may be subject to HMRC tax investigations if their tax returns are considered inaccurate. The British is government is attempting to prevent tax evasions. Any ambiguous / suspicious figures visible in your tax returns, late tax filings, or a catalogue of errors with your tax returns could make your business a good choice for the HMRC tax investigation, e.g. a large company with a substantial turnover, declaring a small amount of tax etc. Other reasons may include:

  • HMRC receives tip off
  • Consistence mistakes in your tax returns
  • Profit / Losses fluctuate by large amount
  • Excessive refund claimed
  • Years of unprofitability
  • Profit / Loss figures do not match with your nature of trade
  • Directors paid less than market standards

HMRC Tax Investigations's Importance

Full HMRC tax investigations can go on for more than a year depending on the level of errors found in the procedure in the procedure. Larger errors and adjustments are more serious as they may convince the inspector to look into the previous years’ tax returns as well. HMRC has a right to go back upwards upto 20 years.

If the HMRC tax investigation reveal that your company has artificially “adjusted or twisted” the figures in your previous tax returns, your company may have to face HMRC tax investigation penalties.

Tax evasion is considered a serious crime in the UK there is a maximum prison sentence of 7 years and there is fine limit.


What to do Next

As they say that prevention is better than cure. It is advisable to use the services of a professional tax accountant before submitting your annual tax returns.  However if you are already facing HMRC tax investigations, then don’t panic, a properly trained professional tax accountant may still be able to help you at this stage as well.

While you cannot 100% safeguard yourself against a HMRC tax investigation procedure – especially if your company is in a high-risk industry –steps can be taken to minimize any damage. We at Total Tax Accountants have helped my clients facing HMRC tax investigation. Just make an appointment with us, bring all your papers and we will tell you what can be done in this regard.

Its easier than you think !

You fill up our online form

We study your requirements

Bingo ! You get our support

So what are you waiting for ?

Your accountant can reduce your chances of being investigated, simply by representing your business in a professional and complaint manner. Whilst there is no guarantee that your accountant can save you from investigation but using accredited accountant services can boost your honesty in the eyes of HMRC

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