There could be many different reasons for an investigation. It is commonly thought that an HMRC investigation is decided randomly, but most investigations are carried out because HMRC believe that there is something amiss with your tax affairs. HMRC may use a number of sources such as the internet, banks, local authorities, news stories, etc, when deciding who to investigate.

HMRC may have picked up an omission or irregularity in your accounts, or you may be in a high risk area which could be geographic or by sector, which is thought to be high risk. Property income is a good example of this. Pointers for HMRC investigations might be a dramatic increase or decrease in your income, consistently late returns or very high expense claims.

For more information, please do get in touch.