Why Does HMRC Open Investigations?
HMRC carries out thousands of compliance checks every year.
You could be selected because:
- Your figures differ from previous years.
- HMRC wants clarification on something in your tax return.
- Information received from a third party doesn’t match your records.
- Your business falls into a sector HMRC is reviewing.
- You are selected as part of a random compliance check.
Being investigated isn’t an accusation of wrongdoing. Often, HMRC simply wants more information.
What Happens During an Investigation?
The process can vary depending on the type of enquiry, but HMRC may ask for:
- Business records
- Bank statements
- Invoices and receipts
- Payroll records
- VAT information
- Explanations of transactions
Some enquiries are resolved with a few emails, while others can continue for several months.
The Hidden Cost of an HMRC Enquiry
Many business owners assume that because they’ve done nothing wrong, responding to HMRC won’t cost them anything.
Unfortunately, that’s not always the case.
Even if no additional tax is due, your accountant may spend many hours:
- Reviewing records
- Preparing responses
- Speaking with HMRC
- Gathering supporting evidence
- Managing correspondence
- Representing you throughout the enquiry
Those professional fees can soon add up.
That’s Why We Include Tax Investigation Protection
At Accountancy Solutions, we believe our clients shouldn’t face unexpected professional fees simply because HMRC asks questions.
That’s why every one of our clients automatically benefits from Tax Investigation Protection at no additional cost.
If HMRC opens a qualifying enquiry, the policy covers our professional fees for dealing with the investigation, subject to the policy terms and conditions.
That means you can focus on running your business while we deal directly with HMRC.
What Does the Protection Cover?
Our policy can provide cover for professional fees relating to many types of HMRC enquiries, including:
- Self Assessment enquiries
- Corporation Tax enquiries
- VAT compliance checks
- Employer Compliance Reviews
- PAYE enquiries
- CIS enquiries
- IR35 enquiries
- Capital Gains Tax enquiries
- National Minimum Wage investigations
- Schedule 36 information requests
The policy provides cover for professional fees of up to £100,000, subject to the policy terms and conditions.
Prevention is Better Than Cure
The best way to minimise the chances of an HMRC enquiry becoming complicated is to keep accurate records and submit your tax returns correctly and on time.
That’s exactly what we help our clients do every day.
And if HMRC ever gets in touch, we’re ready to support you from the very beginning.
More Than Just an Accountant
When you choose Accountancy Solutions, you’re choosing more than someone to submit your tax return.
You’re gaining a trusted adviser who’ll be there if HMRC ever comes calling.
Our clients enjoy:
- Friendly, personal service
- Straightforward advice
- Qualified accountants
- Digital accounting expertise
- FREE Tax Investigation Protection
- Ongoing support whenever they need it
It’s all part of the service.
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Better bookkeeping. Better business information.
Your bookkeeping shouldn’t just be a task that has to be done.
It should give you confidence in your numbers and help you run your business better.
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