HMRC is conducting an increasing number of tax investigations at present. The outcome of inquiries can be significantly affected by the advice provided. Apex Accountants & Tax Advisors assisted a client in saving £95,000 during an HMRC investigation in the United Kingdom. In addition, HMRC withdrew their incorrectly billed amount, much to the client’s relief. Investigations can be extremely serious. HMRC strongly recommends competent independent professional counsel. We can assist clients with their HMRC tax investigations, including Corporation Tax, Personal Tax, VAT, PAYE, and Capital Gains Tax.
Investigations can be carried out for several reasons. HMRC may suspect fraud or dishonesty involving large amounts of tax or use of bespoke tax avoidance. Appearance of VAT fraud and inland detection for fuel, alcohol and tobacco duty may also trigger an investigation.
HMRC could conduct a compliance check for the business.
In addition to VAT enquiries, Unexplained Wealth Order (UWO) investigations are becoming more common. UWO laws were introduced in 2017 amending the Proceeds of Crime Act (POCA). An UWO can be used where assets owned by a person or business appear to be inconsistent with their income level.
Whatever the investigation situation, we can manage the investigation as we know the process and parameters of negotiation. Preparing your disclosure report well and quickly agreeing final liabilities is in everyone’s best interest. Resolving matters satisfactorily with the minimum cost and stress is our goal.
HMRC Fraud Investigation Service (FIS) is responsible for the department’s civil and criminal investigations into the most serious fraud and wrongdoing. FIS ensures that HMRC has an effective approach to tackling the most serious tax evasion and fraud.
Investigation proceedings often commence when the HMRC Inspector has concerns regarding information that has been supplied to them, usually information that can lead to a potential loss.
However, HMRC will not usually notify the person or business that they are investigating during their initial research phase. Written correspondence notifying the subject is often reserved for when a formal investigation is launched. At this point, the Fraud Investigation Service (FIS), (an HMRC department) will inform the subject that they are being investigated.