Tax Enquiries & Investigations
Benjamin Franklin said there are only two inevitable things in life - death and tax. Also true, is the very real fact that HMRC may at some point in your life select you for a tax enquiry. Added to this the realisation is the HMRC now choose businesses to investigate at random, as well as for specific reasons, and it seems even more likely that one day you might get that call.
But fear not. Our team of specialists are highly-trained and on hand to guide you and talk you through the process, should you come under investigation, for whatever reason. We will be alongside you every step of the way, offering you expert advice and guidance, to ensure you feel as at ease as possible throughout the entire process. We will advise you on what to expect and prepare you for what the consequences may be.
HMRC regularly checks the tax affairs of individuals and businesses to make sure they are paying the right amount of tax. If you are being investigated, you will be contacted by the HMRC in writing or over the telephone and informed of what they want to check. It could be any of the following:
● Any taxes you pay
● Accounts and tax calculations
● Your Company Tax Return
● Your Self Assessment tax return
● PAYE records and returns, if you have employees
After this notification you may be asked if HMRC can visit you, or you may be asked to visit them. It’s important to comply with their requests as you may be fined if you refuse to meet with them or do not send any information they have requested.
There are only two reasons why you will be spared paying a penalty: serious illness or the death of a loved one. If you feel that you shouldn’t be the subject of a check or enquiry, you should write to the tax office that sent you the information or inspection notification and state your reasons for feeling this way.
Once your tax compliance check has taken place, HMRC will write to you to inform you whether you’ve paid too much tax, or not enough. If you have paid too much tax you will be repaid. You may also be entitled to interest on the amount you’re owed.
If you haven’t paid enough tax, you’ll be asked to pay what you owe and given 30 days to make this payment. You may also have to pay interest dated from the date your tax was due.
HMRC will also look at several factors that will determine whether you are required to pay an additional penalty or not. These include:
● Your reasons for underpaying or overclaiming
● How early you informed HMRC of the mistake
● Whether or not you were co-operative during the check process
If you have problems paying, you should inform the officer dealing with your case.
However, by talking to Smart Solutions Taxation and Accounting as soon as you are notified of an upcoming tax compliance check, enquiry or investigation, you can remove a lot of the hassle and worry that is usually associated with such events.
Our specialist team is experienced in these matters and is on hand to make it as worry-free as possible for you and your business.
Contact us today to find out how we can help you keep on top of your tax affairs.