Tax enquiries and investigations
HM Revenue and Customs can select businesses as well as individuals on a random basis, without explanation, and can persue a detailed and thorough investigation of your business finances which usually extends to your personal financial affairs.
It is an unfortunate fact of business life that you may well come under enquiry by HMRC through no fault of your own or of your accountant. A full investigation is not a pleasant experience for anyone and without expert defence it is possible to get trampled upon.
The vast majority of investigations will continue to have nothing whatsoever to do with fraud or negligence; minor year-to-year fluctuations in results may be enough to trigger a full enquiry.
Currently an average HM Revenue and Customs investigation will last around 10 months and cost some £2,000 in professional fees to complete. Costs often bear no relation to the final tax settlement.
If you are selected at random, you need an accountant who knows how the Taxman works and thinks and is prepared to fight your case. We make sure that HMRC keeps to their own internal guidelines and don’t over step the mark. We will talk you through the enquiry process and what to expect and support you throughout.
There are various penalties HMRC can seek to impose following an enquiry for undeclared income. As well as having to pay the tax, you can find them seeking penalties up to an amount equal to the tax, so doubling your tax bill. Interest on the late payment of the tax is also part of the arrangement – not a pleasant experience. We can help you minimize these penalties.
anti-investigation scanning checks
Whilst with random investigations anyone can come under enquiry, you can help to avoid the chance of an investigation into your affairs for other reasons. We know the triggers that often give rise to enquiries if not fully explained to HMRC when submitting Returns to them. Every Tax Return or set of accounts we submit to the Taxman goes through an anti-investigation scanning check to identify any areas that may lead to an enquiry before they are submitted without explanation. This really does help to minimise the chances of you being on the wrong end of an enquiry.
At Oxford Tax Solutions, we have over 30-years experience in dealing with HMRC and can provide expert help and advice to help take away the stress and worry should the tax man come knocking.