The vast majority of HMRC compliance checks begin because there are concerns about the integrity of a tax return and/or accounts submitted by an individual, partnership or business.
If you are receive a notice informing you that HMRC wish to check your tax position then it is safe to assume that HMRC feel that you or your business has underpaid tax, either due to negligence or fraud. Essentially this is a tax investigation in another guise.
HMRC compliance checks teams will consider several factors including risk, means, industry knowledge, business economics and perhaps the results received by similar businesses in your geographical area.
The inspector is also likely to hold a file of information obtained from third parties such as banks, local authorities and in some circumstances informants.
HMRC compliance checks are expensive and the department have a limited pool of resources available to them, so if HMRC open up a compliance check the investigator is very much expected to bring in a yield.
HMRC Compliance Checks Providing records
If you receive a notice informing you that HMRC wish to check your tax position, you should seek specialist advice immediately.
HMRC will ask for information and records as part of their check. It may be that the Inspector is stepping outside of the statutory limitations or asking for information or documents that they are not reasonably entitled to.
We have written further detailed articles on HMRC compliance checks which you may find useful. These can be found by clicking on the links below:
If you have any questions regarding either article or concerning HMRC compliance checks generally then please do not hesitate to drop us a line. Better still give us a call on 0330 999 5000.
HMRC Compliance Check Advice
Admiral Tax are HMRC compliance checks specialists. We are staffed by former tax inspectors experienced in the entire HMRC compliance checks process. When you combine that internal departmental experience with a proven track record of success within private practice there is simply no firm better placed to your handle your case than us.
For a no commitment, confidential discussion regarding what we can achieve during the HMRC compliance checks process call us on 0330 999 5000.
If you prefer email please visit our contact page. We promise to respond to your HMRC compliance checks enquiries within an hour.
An initial consultation will be undertaken without charge and give our consultant the opportunity to offer you the no nonsense, practical advice that you need.