At Altion Law, our tax investigation specialists are dedicated to helping individuals, micro businesses, and SMEs with all manner of HMRC issues, including tax investigations. Our HMRC team is comprised of leading solicitors and barristers with decades of both legal and commercial experience in the field, making us ideally placed to represent you and your business during a tax investigation. Our expertise will ensure your commercial interests are protected and secure the best possible outcome.
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 is a Tax Investigation?
There are several different types of tax investigations, all of which seek to confirm that you have properly declared your income and paid the right amount of tax. Our tax investigation specialists routinely represent clients in connection with all kinds of tax investigations, including the following:
- Compliance Checks
HMRC undertakes compliance checks to confirm that businesses and individuals are complying with their tax obligations. If you are chosen to undergo a compliance check, it does not necessarily mean that HMRC suspects wrongdoing. Sometimes, businesses are selected for reasons such as operating in a high-risk sector. However, you must still take the matter seriously and cooperate with HMRC since straightforward compliance checks can become more detailed investigations if HMRC’s officers uncover anomalies in your tax reporting.
- Enquiries
HMRC undertakes two types of enquiries, known as ‘aspect’ and ‘full.’
As its name suggests, in an aspect enquiry, HMRC checks a specific aspect of a tax return, such as a source of income, to confirm that the information you have provided is correct. In a full enquiry, its officers check your complete tax return for any anomalies.
- Civil Investigation of Fraud.
HMRC undertakes civil investigations of fraud when they believe you have dishonestly reported your income and committed tax fraud. More commonly referred to as ‘COP9’ investigations, civil investigations of fraud are extremely serious, and it’s highly advisable to seek legal advice from tax investigation specialists like ours if you receive notification that HMRC is opening one in connection with your affairs. If you do not deal with a civil investigation of fraud correctly, you run the risk of HMRC opening a criminal investigation.
- Criminal Investigations
HMRC’s main goal is to recover unpaid tax rather than prosecute individuals. However, that does not mean that there is no risk of HMRC opening a criminal investigation into your affairs, since HMRC expressly reserves its rights to use its criminal powers where it sees fit. You are more likely to face a criminal investigation if you are an influential individual, your affairs indicate criminal behaviour, or you have committed previous tax offences.
HMRC cannot prosecute taxpayers for tax evasion; that decision lies with the Criminal Prosecution Service, or the CPS. HMRC does, however, have far reaching powers to collate evidence to pass to the CPS, including undertaking dawn raids and making arrests.
How can our Tax Investigation specialists help?
Whilst HMRC has extensive powers when conducting tax investigations, its officers must follow the correct rules and procedures. For example, any investigation into a tax return must be commenced within 12 months of it being filed, and the officers can only go back as far as they are permitted in the circumstances. If they believe you have made an innocent mistake, they can go back four years. If they suspect carelessness, their investigations can go back six years, and in cases which appear to involve deliberate tax evasion, the window can be extended to a maximum of 20 years.
Our HMRC tax investigation specialists have intricate knowledge of HMRC’s powers and the rules and procedures which its officers must adhere to. We will ensure they act in accordance with those rules at all times and, if we suspect them of overstepping the mark and acting unreasonably, we will challenge them and take any action necessary to protect your interests, which might include making a formal complaint.
At the same time, however, we are mindful of HMRC’s general willingness to impose more lenient penalties on taxpayers who have cooperated with their investigations and assisted its officers in getting to the bottom of any issues or anomalies uncovered. We have vast experience of dealing with HMRC and have a proven track record of securing excellent tax investigations outcomes for our clients.
Our legal expertise and experience in the areas of HMRC and Border Force is second to none, but we believe our true value comes from our ability to distil complex legal principles into straightforward, commercial advice. Clients note how we ‘understood [their] business, goals, and objectives’, and provided them with ‘practical advice tailored to [their] business.’
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.
