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What is a Tax Investigation?

 

  • Many tax investigations occur randomly. However, unusual fluctuations, undisclosed accounts, and irregular spending can also trigger an enquiry into individuals and companies.

  • HMRC has the authority to inspect business documents and assets at your premises, request additional documents and information, conduct unannounced inspections, and investigate matters going back up to six years.

  • These investigations can be disruptive, intrusive, and costly. When HMRC investigates, the process can extend for a year or more, leading to mounting expenses and increased stress levels.

£843bn
Total Tax Revenues

320,000
HMRC Compliance Checks in 2023/24

£3,800

The Average Cost of an Enquiry

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Our Expertise

Our Tax Investigation Service means that should you, or your business, suffer an HMRC investigation we can:

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  • Provide you with full professional representation from tax and accountancy staff who already know you and understand your tax affairs

  • Handle HMRC on your behalf by dealing with all correspondence and attending all meetings

  • Negotiate the best possible result for you

  • ​We believe that our Tax Investigation Service provides a lifeline to our clients by providing low cost, but valuable peace of mind, at a time when it is most needed.

Case Studies

Incorrect Information

HMRC opened an enquiry into an individual suggesting a client had not declared all of their income on their tax return. HMRC then refused to disclose to the client what information they held. 

The enquiry lasted for over three years and cost over £15,000 to deal with in accountancy fees alone.

It turned out that HMRC’s information was incorrect and that no tax penalties or interest were due. However the accountant’s fees were still settled under the Tax Investigation Service.
Cross Tax Enquiry

HMRC launched a “Cross Tax Enquiry” into a manufacturing business that included a full review of the entire corporation tax return and four years of PAYE and VAT records.

From the outset it became clear that HMRC were unsure exactly what they were looking for and were undergoing a fishing expedition. 

The questioning became increasingly onerous and seemingly endless. After one meeting alone, dozens of questions followed. Despite the best efforts of the advisor, the enquiry dragged on for over two years, resulting in only small adjustments. Over £20,000 of fees were settled under the Tax Investigation Service.
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