HMRC is entitled to investigate the tax affairs of any individual or business to check they are paying the correct amount of tax and recoup any losses. Receiving notification that you have been chosen to undergo a tax investigation can be daunting. HMRC may have selected you at random, or it may have evidence of wrongdoing that it wishes to look into further. Whatever type of investigation you are facing, guidance and support from tax investigation specialists like ours can be invaluable. Our HMRC team is comprised of expert solicitors and barristers experienced in assisting clients with all tax related matters, including tax investigations. We are committed to ensuring your fair treatment throughout the process, negotiating a favourable settlement and, where necessary, pursuing an appeal against HMRC’s decision.

 

What is a Tax Investigation?

HMRC undertakes three levels of tax investigation, known as full, aspect and random. Full investigations involve HMRC carrying out a comprehensive review of your tax return. An aspect enquiry concentrates on discrete issues. A small number of tax returns are selected for a full enquiry on a random basis. These are known as random enquiries.

For a confidential free discussion, call us today on 01908 414990,  alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.

What triggers a Tax Investigation?

HMRC launches around 300,000 tax investigations each year, for various reasons. The most common triggers for tax investigations include the following:

 

  • Late filings

Persistently filing your tax returns or paying your taxes late can put you on HMRC’s radar and result in a tax investigation. Therefore, filing your returns and paying any tax due by the deadline is essential.

 

  • Errors

Submitting a tax return which appears to contain incorrect information is a common reason for HMRC to launch an investigation, so the figures in your return must be accurate.

 

  • Inconsistencies

Significant fluctuations between the reported income and expenses in different returns can trigger a tax investigation. You must ensure that the information submitted to HMRC is correct and that you are able to explain any apparent inconsistencies or variations.

 

  • Operating in a high-risk industry

HMRC may investigate your tax affairs if you operate in an industry from which a large amount of tax is being lost, for example, because businesses in the industry routinely deal in cash.

 

  • Low reported earnings

A taxpayer reporting unusually low reported earnings can be a red flag for HMRC, particularly where there is a mismatch between those earnings and the taxpayer’s lifestyle.

 

  • Tipoff

If HMRC receives a tipoff that you are underreporting tax, it may launch an investigation to establish the veracity of the information.

 

What do our Tax Investigation Specialists do?

Our tax investigations specialists have vast expertise in all types of tax investigation, from the routine through to the most serious. We will be on your side from when you are notified of the investigation until its conclusion.

Examples of the types of tasks our tax investigation specialists routinely undertake for our clients include the following:

  • Assessing their tax position and identifying any anomalies so they can remedy them before the issue escalates.
  • Dealing with correspondence received from HMRC.
  • Assisting them in responding to HMRC’s enquiries.
  • Liaising with HMRC on their behalf.
  • Representing them at meetings with HMRC officers.
  • Managing the disclosure process, both voluntary and involuntary.
  • Negotiating tax debts and penalties.
  • Checking that the amounts HMRC claims are owed are correct.
  • Appealing HMRC decisions to the Tribunal.
  • Representing them in Court or Tribunal proceedings.

 

Why should you choose our Tax Investigation Specialists?

Many solicitors’ firms deal with tax issues, but few have a dedicated HMRC department like ours. Our solicitors and barristers are recognised experts in the field and have a proven track record of achieving excellent results for clients in tax investigations. Our legal expertise, coupled with our deep understanding of HMRC policies and procedures, enables us to devise highly effective strategies in the most challenging circumstances. We will ensure HMRC’s officers act within the remit of their powers at all times and work tirelessly to protect your interests. If the investigation uncovers any wrongdoing on your part, we will give clear, honest advice aimed at mitigating the impact of the findings and securing the most lenient penalty available. We understand the sensitivity of our clients’ tax affairs and the need for confidentiality, so you can be assured that our tax investigation specialists will act with the utmost discretion.

Since urgent action is often required, we offer a fixed fee initial consultation to assess the complexity of your issue and advise how you should proceed in the first instance. We are clear and transparent on our billing practices and will ensure you understand our charges from the outset. We will keep you updated on costs throughout the matter, providing regular quotes and breakdowns and responding to any queries you may have swiftly and comprehensively.

For a confidential free discussion, call us today on 01908 414990,  alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.