HM Revenue & Customs (HMRC) randomly checks a proportion of tax returns to test its system, so some people will be checked even though their affairs are entirely in order. Other enquiries begin because there is something on a tax return that HMRC doesn’t understand or they think it may be incorrect and needs clarification.
However, most returns are selected because HMRC believes there is a risk that there could be discrepancies between tax declared and the tax due.
Some investigations will involve a detailed examination of a specific item on a tax return, for example, which is known as an aspect inquiry. Others may extend to a full review of the individual’s or business’s tax affairs.
Whatever the reason behind an investigation, they can be time-consuming and stressful, which is why seeking expert advice is essential.
McPhersons Chartered Accountants and Tax Advisors have wide-ranging experience in dealing with HMRC investigations, from enquiries into personal tax returns to employer-related investigations into VAT, PAYE and P11d compliance.
If you are about to be the subject of an investigation, we can provide expert help and support every step of the way, giving you the reassurance that your tax affairs are in expert hands, with a focus on achieving the best possible outcome for you
As the risk of HMRC investigations grows in line with its increasing focus on tackling tax evasion and avoidance, it may be worth considering taking out tax investigation insurance to protect you and your business from the professional advice costs arising from an investigation, which could be substantial.
For more information on how McPhersons Chartered Accountants and Tax Advisors in Hastings and Bexhill can help you, please contact us.
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