Tax investigation cases often arrive with us when previously unrepresented clients find themselves in difficulty.
During any tax investigation effective case management is vital. This principle applies regardless of the complexity of the matters at hand. We have recently seen, what should have been fairly straight forward compliance checks, become protracted and tied up in unnecessary and expensive minutae.
HMRC will often be the root cause of unnecessary delay. Delays can be caused for a couple of reasons. The first being case load pressure.
Tax Investigation Resources
As tax investigation resources become increasingly tight, tax inspectors are often faced with heavy case loads. It is not unusual for investigators to be running 30 tax investigations at the same time. Given that even the most straight forward tax investigation is time intensive, it can easily imagined how any compliance check officer can quickly become swamped under increasing pressure to produce results.
Managing the level of paperwork involved in any tax investigation can take a huge amount of time in itself. Whether it be information notice, contract agreements or estimated assessments the paperwork has to be correct first time, every time. If HMRC fall down in this area a tax investigation case can be compromised. A tax investigation information notice for example is a legal document. It is binding. If it is incorrect this can cause problems for both sides. The same applies to estimated assessment or contracts.
Tax Investigation Targets
Secondly we have the issue of yields. HMRC tax investigation teams are expected to bring in the money. That is their primary objective.
Managers within the department expect results. The vast majority of tax investigations are expected to prodcue a yield. It is simple ecomonics. Tax investigation officers are reasonably well paid and lots is invested in trainig and support. That investment is expected to produce results.
Tax Investigation Advice
Obtaining specialist tax investigation advice as early as possible is absolutely key, given that your goal should be a cost effective, tax efficient resolution.
We settle cases quickly and effectively. Our average time to settlement is just 6 months. Call us for a free no commitment discussion on 0330 999 5000.