What is an HMRC tax investigation?
Every year, HM Revenue and Customs (HMRC) launches investigations into the tax or VAT affairs of thousands of individuals and businesses. It does not necessarily mean that you have done anything wrong, but it can still be time-consuming and stressful.
Some enquiries can require you to produce large volumes of financial records, bank statements and other documents, sometimes going back years.
Why does HMRC launch tax investigations?
A small number of enquiries by HMRC are random checks. Sometimes an enquiry can be sparked by a mistake or conflicting information on your tax or VAT returns. Occasionally, someone else may have reported you to HMRC. From time to time, HMRC has targeted specific types of businesses or certain sectors.
HMRC wants to ensure that everyone follows the rules and pays tax at the correct rate.
What happens during a tax investigation?
Once HMRC contacts you to start an enquiry, you are obliged to produce the information they request. HMRC may ask to visit your home, your business or the office of your accountant or financial advisor. They may ask you to visit them.
How to protect yourself from the cost of an HMRC investigation
At Sence Accounting we provide expert tax investigation advice, but we can also offer tax investigation insurance, which protects you from the costs that may arise as a result of a tax or VAT enquiry.
Our tax protection service covers up to the equivalent of £100,000 towards our professional fees resulting from any HMRC investigations. This might include a check started by HMRC regarding your compliance with:
- Income tax and/or corporation tax self-assessment
- National insurance
- National minimum wage
- Gift aid legislation
Included within this service is comprehensive access to highly-experienced consultants specialising in employment law, health and safety and HR expertise if required.
- We can assist you & HMRC with the enquiry
- We can spend time on this to ensure a swift conclusion is drawn
- Enquiries are on the rise, so this protection is reassurance
“Sence Accounting came highly recommended to us and have proved why they have such a good reputation. Anna and the team have always been very helpful and guided us through anything we were not sure of. Amy comes to our office to carry out bookkeeping duties and is always professional and fits in well with our team. I would recommend Sence every time.”Mr KMCNovember 2019
“My business has changed considerably since joining Sence, during this period they have guided and supported us throughout this growth, critically advising us as our needs have changed. From tax planning, variance analysis and external payroll services there is a wealth of advice and support that we have used and will continue to draw upon.Mr XAugust 2019
We can't fault the professionalism and personal touch that Sence provides a business like ours and can highly recommend them to any business no matter how big or small they are.”
"One of the biggest positives for me about working with Sence is that I can trust them to do what’s right for me. I’m only a small business but they have my best interests at heart, nothing is too much trouble & there are no silly questions. I know that my accounts & self-assessment tax return will be filed in plenty of time. It is very clear that Anna & her team have a passion for helping businesses all shapes & sizes."Mrs LVMay 2020