HM Revenue & Customs (HMRC) is working hard to collect more revenue than ever before. In 2016 it generated £26.6 billion from compliance activity. This figure is set to rise as HMRC strive to reach compliance targets through increased investigations coming from both full and aspect enquiries.
The risk and consequences of being investigated have both increased. HMRC are now selecting taxpayers for investigation at random or for no good reason and using wider powers to visit homes and businesses. Following this they are charging extra tax, interest and penalties and allowing less time to pay any tax due.
An Example Enquiry
A builder was investigated by HMRC regarding bank interest that was not declared on his personal tax return, which prompted HMRC to carry out a full investigation into his self employed accounts. The builder admitted that the undeclared interest was an oversight and did not seek to challenge this. The total sum of the liability, interest and penalties was £1,500. However the enquiry took 9 months and resulted in circa £3,000 of accountancy fees.
Anyone who pays tax can suffer an enquiry or compliance check by HMRC. If this happens to you:
- You will have to prove that HMRC’s suspicions are unfounded
- HMRC’s detailed and intrusive questions will take time to answer
- A lot of work will have to be done to respond to the questions asked
- The enquiries can drag on for months and sometimes years
- Professional fees of hundreds or thousands of pounds may become due as a result
We provide a complimentary service to clients through our partners Qdos Vantage Ltd, under which, in the event of a HMRC enquiry or inspection:
- You will receive the best possible defence
- You will not be charged for most professional costs incurred in your defence
- You will not have to concede to HMRC’s demands because of financial pressures
As an additional benefit, complimentary expert telephone advice can be obtained on:
- Employment law
- Health & safety matters
- General legal issues
The advice can be very valuable, particularly to many business clients, and is available to all our clients.
Please click here for a summary of the policy. Contact us for full policy details.
Require more information?
If you would like more information or would like to speak to us direct then call us on 01202 730736. Or if you would prefer, ask us a question online.