Our tax investigation solicitors specialise in assisting clients with all HMRC-related matters. Whether you have been selected at random or HMRC has reason to suspect tax fraud, our dedicated team of solicitors and barristers are on hand to provide discreet, commercially focused advice to resolve the issue as quickly and cost-efficiently 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 happens during a Tax Investigation?

HMRC will notify you of their intention to investigate your tax affairs either in writing or by telephone call. If you have an accountant acting for you, HMRC will contact them instead of you, and they, in turn, will notify you. HMRC will provide details of the matters they wish to look into, request any specific information or documentation they want to see, and give a deadline by which you must provide that information or documentation. If you miss the deadline, you may incur a penalty unless you have a ‘reasonable’ excuse, such as being seriously ill or a loved one having recently passed away.

HMRC may wish to visit you at your home or business premises, or they may request that you attend their offices. You are entitled to have a tax investigation solicitor present at the meeting, and it’s often a good idea to do so. An experienced tax investigation solicitor will understand the scope of the investigation and ensure that HMRC’s officers operate in accordance with the relevant rules and regulations. Our HMRC team have attended countless tax investigations with our clients. They are familiar with HMRC’s policies and procedures and will liaise with the officers on your behalf, ensuring the investigation runs smoothly.

During their investigation, HMRC officers might scrutinise your tax calculations, audit your accounts, and interview you and other key personnel to evaluate your business’s tax compliance and assess the measures you have in place to fulfil your reporting obligations.

 

What happens after a Tax Investigation?

When HMRC’s officers have completed their tax investigation, they will write to inform you of the result. There are several possible outcomes, including the following:

 

  • The Tax Investigation revealed that you have overpaid tax

If the results of the tax investigation are that you have overpaid tax, you will receive a rebate.

 

  • The Tax Investigation revealed that you have underpaid tax

 If the results of the tax investigation are that you have underpaid tax due to an error or mistake, you will likely be required to pay the tax you owe within 30, probably with interest from the date on which payment was due.

Depending on the reasons for your underpayment and the overall circumstances of the matter, you may also have to pay penalties. When deciding whether a penalty is appropriate, HMRC will consider various factors, including why you underpaid tax, whether you informed HMRC of the underpayment, and how cooperative you were with HMRC’s officers during the tax investigation. Working with specialist tax investigation solicitors will ensure you do all that is expected of you during the investigation and make all necessary disclosures, which can encourage leniency on the part of HMRC.

 

  • The Tax Investigation revealed deliberate wrongdoing on your part

If HMRC’s officers discover that you intentionally paid the incorrect amount of tax, they may initiate legal proceedings against you.  As a general rule, HMRC tends to pursue civil as opposed to criminal proceedings against dishonest taxpayers, with a view to recovering the sums owed to the treasury as swiftly as possible. However, HMRC reserves its right to bring criminal prosecutions where it considers them appropriate, so you should never discount the possibility of facing criminal charges and even imprisonment. Accordingly, it’s essential to take advice from experienced tax investigation solicitors like ours if you consider there might be a chance that an enquiry will uncover irregularities in your tax affairs. We will review the relevant documentation, evaluates your position, and advise on the best course of action. Often, HMRC imposes lesser penalties on taxpayers who come clean about their wrongdoing before HMRC discovers it. Our tax investigation solicitors will collate the necessary information and present it in the most favourable light possible. We will then proceed to negotiate a settlement with HMRC to avoid the need for legal proceedings.

 

If you receive notification from HMRC that your tax affairs are being investigated, you must deal with it as a matter of priority. By facing the issue head-on with the support of tax investigation solicitors, you can avoid the issue escalating, achieve a quick settlement, and get back to focusing on the continued success of your 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.