Compliance Checks & Tax Investigations

We can assist you with HMRC compliance checks and tax investigations.

What is a compliance check? Why will HMRC want to look into your business accounts further?

HMRC carries out compliance checks also known as tax enquiries, investigations, assurance visits or inspections to make sure that individuals and businesses alike are meeting their tax responsibilities. A compliance check is a formal investigation into your tax affairs to make sure your tax return is correct and/or to check that any payments made by the company are for the right amount and are paid on time.

Another reason for carrying out a compliance check is to deter tax evasion and to make sure the tax system is operating fairly, so some checks are random and some are risk based. Therefore, launching a compliance check doesn’t necessarily mean that the tax authority believes there are any serious problems as many checks are simply routine.

In short, something may have triggered a compliance check, for instance, when the numbers entered on a tax return appear to be wrong or when a small business makes a large VAT claim. The only way HMRC can find out whether the return is correct is by conducting a compliance check. HMRC will bring the check to an end if nothing is wrong. However, if something doesn’t add up, the tax authority will work with you to put things right. If tax has been overpaid, it will be repaid with interests. However, if tax has been underpaid, interest may be charged.

Individuals and companies can ask for a review or appeal against HMRC’s decision. The decision notice issued by HMRC explains what you can and can’t appeal. Our team have assisted many of our clients with these investigations to help ensure that the HMRC can easily find the information they are looking for and also help to minimise any adverse decisions for our clients. We are also able to assist with appeals on HMRC’s decisions, hopefully making the process a little less stressful.