Many businesses will face a routine tax investigation from time to time. More serious investigations are likely if HM Revenue & Customs (HMRC) suspects your tax returns are inaccurate.
HMRC has now put small businesses under the microscope and are chasing the estimated £33 billion that is missing from the tax bill.
How will i know i am under Investigation?
HM Revenue and Customs (HMRC) will write or phone to inform you that you are the subject of a tax investigation and what they want to check. This could be:
What will HMRC check?
- any taxes you pay
- accounts and tax calculations
- your Self Assessment tax return
- your Company Tax Return
- PAYE records and returns, if you employ people
What happens during the Investigation?
HMRC can ask to visit you at your home, business address or accountants office similarly you could be asked to visit them. You will be asked to answer HMRC’s questions and provide information. Once a tax investigation has began it could last several months.
After the Investigation
Once HMRC are satisfied they will write to you with the results. You may have to pay a penalty depending on the circumstances.
At AJR & Co we believe it is vital to protect your business and include Tax Investigation Insurance in our fees therefore covering you against the cost of professional fees that you should incur as a result of being investigated.
If you would like to discuss this or any other accountancy issue contact AJR & Co Ltd for a free 30 minute consultation.