An HMRC compliance investigation is undertaken by HMRC officers to ensure you are paying the correct amount of tax, confirm you are receiving the appropriate tax reliefs and allowances, discourage tax evasion, and check that the tax system is operating as it should.

You are entitled to ask an advisor to deal with HMRC on your behalf during an HMRC compliance investigation. Our specialist HMRC solicitors and barristers are perfectly placed to take on the role. We will effectively resolve any issues that arise and ensure the HMRC compliance investigation concludes as swiftly as possible.

 

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 an HMRC Compliance Investigation?

HMRC can look into the tax affairs of anyone it chooses, but specific issues may prompt them to open an HMRC compliance investigation. They include the following:

  • Inaccurate figures on a tax return.
  • Declaring a small amount of tax when your turnover has been significant.
  • Claiming a substantial VAT refund when your turnover is low.

You may have a reasonable explanation for any apparent anomalies HMRC identifies, and our HMRC solicitors will assist you in explaining the situation. If you believe that there may be problems with your tax affairs, we will work with you to prepare the relevant information and documentation to present to HMRC and use our vast experience to negotiate the very best outcome for you.

 

How will you be notified about an HMRC Compliance Investigation?

 HMRC will contact you in writing or by phone to notify you that they intend to open an HMRC compliance investigation. They will tell you what they would like to look into, which could be any of the following:

  • Your self-assessment tax return.
  • Your company’s tax return.
  • Your PAYE records.
  • Your accounts and tax calculations.
  • The taxes you pay.

 

Do you have to cooperate with an HMRC Compliance Check?

Yes, you must allow HMRC to undertake an HMRC compliance check into your tax affairs. If you do not provide them with access to the relevant information, fail to send them any documentation they ask for, or refuse a visit, you may incur a penalty.

You may not have to pay a penalty if you have a ‘reasonable excuse’ for your refusals. Examples of circumstances that may constitute a ‘reasonable excuse’ include if someone close to you has recently passed away or if you are seriously ill.

If you do not believe that HMRC has the right to undertake its proposed HMRC compliance check, you can notify it of your concerns in writing. You can also explore alternative dispute resolution to settle the matter. You must not simply ignore the issue, as doing so may incur a penalty. Our HMRC solicitors will talk you through the process and prepare the relevant documentation on your behalf.

 

How long does an HMRC Compliance Investigation take?

 How long an HMRC compliance investigation takes depends on the circumstances and what HMRC officers uncover during the course of their checks. Some can be concluded quickly, while other, more complex matters, may last several years.

You can help facilitate a swift resolution of your HMRC compliance investigation by cooperating with HMRC and working with experienced HMRC solicitors, like ours, who have vast experience in the process and can resolve any issues quickly.

 

What will happen after the HMRC Compliance Check?

Once HMRC has concluded its HMRC compliance check, it will notify you of the outcome in writing. The outcome might be:

  • You have overpaid tax, in which case HMRC will repay you, potentially with interest.
  • You have not paid enough tax, in which case you will have to pay what you owe, together with interest.

HMRC also has the power to impose financial penalties on taxpayers for a variety of reasons, including the following:

  • The taxpayer has made errors in their payments, paperwork, or returns.
  • The taxpayer filed their tax returns late or failed to pay the tax due on time.
  • The taxpayer did not comply with HMRC’s requests for information or documentation.
  • The taxpayer failed to notify HMRC of their liability to pay tax when they had an obligation to do so.

When deciding the level of penalty to charge, HMRC will take various matters into account, including why the issue arose, whether it was a mistake or deliberate, and if you told HMRC as soon as you became aware of it or waited for its officers to uncover the problem. It will also consider how helpful you were during the HMRC compliance investigation. Our HMRC solicitors will guide you through the process and ensure you do everything necessary to encourage HMRC to impose the most lenient penalty possible.

 

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.