There are many phrases for a tax investigation, the terms ‘enquiry’ and ‘checking the return’ are just two but whatever term is used any tax investigation is an obtrusive and demanding challenge to your tax returns and accounts. It is a stressful and potentially costly exercise and one that can have a major impact on you, your family and your business. It is a truly daunting prospect.

With the new HMRC information powers and penalty regime in force the ability for HMRC to obtain information and then heavily penalise anything other than a genuine mistake has never been greater. Investigations are rarely random, less than 5% of individuals, traders and businesses are enquired into each year and of those less than 5% of enquiries are truly random so HMRC is looking at you for a reason they are not obliged to disclose to you.

Income tax enquiries usually commence with a notification from HMRC of their intention to enquire together with a copy of their Code of Practice 11. For companies there will usually be a formal notice of intention to enquire together with a copy of Code of Practice 14. In either case the Inspector will very quickly seek to review all of your business records, meet with you to discuss your business (and private) affairs in depth and he will try to obtain as much detail as possible about your personal finances and assets. He may also seek details of your partners or spouses finances. Investigations of this type can last for several years if not dealt with appropriately from the outset.

We have considerable experience in dealing with these matters and all of this experience will be working for you. We can manage the investigation on your behalf; reducing the need for you to be interviewed by HMRC officers as much as possible and controlling the flow of information and documents. This will leave you free to concentrate on your business, your work and your family.

We remain completely objective throughout the entire process; as will our advice and wherever applicable our specialists will present a robust defence of your position. You will be informed and consulted at every stage. Our specialist knowledge and experience can also help us to achieve the best possible financial outcome on your behalf and as quickly as possible; negotiating with HMRC for the best resolution.

We can work alongside your existing advisers leaving you both free to deal with everything else so you can move on at the end of our involvement.