Tax Investigation

Facing a Tax Investigation? Don’t Fear!

Over recent years HMRC have enquired into more individuals and companies tax returns than before. If you have not yet had a tax enquiry will you be next?
For VAT and PAYE investigations we encourage the inspector to undertake their visit at our premises with our client’s records being made available to them here. This allows us to be on hand to answer any questions that may arise as well as taking the pressure off you.

Income tax and corporation tax enquiries are generally dealt with in writing and we have always managed to satisfy our clients enquiries and where required negotiate a settlement in our favour. A few examples of such cases are as follows:

  • Defending a substantial retrospective capital allowance claims in excess of £1m resulting in a tax repayment to the client
  • Arguing the validity of an annual investment allowance claim for a website where HMRC disagreed and argued the asset should be treated as an intangible asset
  • Disproving that two companies were associated for tax purposes resulting in our clients company paying a lower rate of tax
  • Dealing with an employment vs self employment case (IR35) and successfully proving the client was not subject to this legislation
  • Taking on a tax enquiry where several local accountants were unsuccessful and reducing the individual’s tax assessment that was over £100,000 by as much as 60%
  • Successfully overturning a self assessment late filing penalty of £1,200 by using guidance under legislation rather than guidance provided by HMRC

HMRC’s power to enquire into a tax return is taken from the Taxes Management Act 1970 and they have the power to amend a tax payer’s return from the information they have if they believe it is incorrect. As this may result in an adverse effect for the tax payer it is important that it is resolved quickly with the right care and attention.

Talk to us about your position and we will let you know how we can help to minimise tax assessments. If it is a general enquiry into the contents of the submitted accounts it may be a simple case of answering all of the questions in enough detail so that HMRC are satisfied and issue a closure notice.

To discuss any tax enquiry you are involved in or to set up tax protection insurance (clients only) please call us on 0845 345 7785.

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