Businesses, directors, individuals – all taxpayers can find themselves subject to a tax investigation, on either a selective or random basis.
A tax investigation can take months to resolve. They are costly, stressful, disruptive and invasive. But they are highly lucrative for HMRC.
HMRC is becoming more effective and prolific in targeting individuals and business through tax investigations.
As HMRC seeks to increase tax revenues, we are seeing growing numbers of tax investigations.
Enhanced tax enforcement is largely being driven by ‘Connect’ – HMRC’s specialist software. Connect is being used by HMRC to analyse taxpayers’ spending and earnings, in order to identify discrepancies that trigger a tax investigation.
Use of Connect, combined with wider powers and inflated targets, means HMRC are able to identify and act on increasing volumes of cases relating to taxpayers’ financial positions. Put simply, more businesses and individuals are now being subjected to a tax investigation.
Poor handling of an HMRC tax investigation by the taxpayer can often result in a less favourable outcome, and a period of considerable stress.
Seeking professional advice early in the process will alleviate pressure on you, helping you ensure you are following the process and meeting your obligations under the tax investigation, while improving the prospects of reducing your liability at the conclusion.
Here to help
As specialist tax advisers, ETC has experience in dealing with a broad range of HMRC tax investigations and enquiries affecting individuals and businesses, including Accelerated Payment Notices (“APNs”).
If you have received notification that you or your business will be subject to an HMRC tax investigation, we can manage the effective running of the process, reducing the stress and impact on you, your loved ones and your business.
Timing and impact of your response to HMRC will be critical.
We will manage the entire tax investigation on your behalf, with a focus on minimising the risk to your finances. This includes handling all contact with HMRC, dealing with all questions and enquiries, and drafting and submitting required information. Where relevant, we are also experienced in dealing with insurers.
The process is demanding, exhausting and invasive. Taking early and decisive action, based on professional tax advice, will improve your chances of securing an outcome in your favour.