HMRC Investigation – Should You Worry?
HMRC Investigations are on the rise these days. And if you think you might be on their radar for Tax Investigation, it’s time to take action.
As you know, HMRC Investigations can be time-consuming & expensive. So, it actually is beneficial for You to know some facts about the HMRC Investigations.
Some Hard Facts
£33 Billion is the estimated tax gap between what HMRC should collect and what it does collect.
£17.5 Billion of that tax gap is attributed to Small Business(£14.7bn) and Individuals (£3.4bn)
So how do you think HMRC fills this gap????
TAX and VAT investigations are the significant tools which are used to fill this gap.
HMRC clams down on Tax Avoidance and identifies the target areas where they believe the Tax is at Risk.
With sophisticated technology & software they identify the anomalies while still carrying out random investigations.
To be honest, if you have not committed any tax fraud and have your account books kept efficiently then you should not worry too much about the investigation carried out by HMRC.
No doubt it can be a time-consuming affair but it need not turn expensive.
Hopefully our Guide will help you get some peace of mind as regards the HMRC Investigation.
What is Tax Investigation?
If you are a Business or Individual your tax affairs might be checked to make sure you are paying the right amount of tax not only for the current financial year but have also done so historically.
Having selected for the investigation does not imply that you have committed any fraud or tax avoidance. So please relax.
Tax compliance checks - GOV.UK (www.gov.uk)
How are you impacted?
In the event that you have been selected for the HMRC Tax investigation, please keep in mind that it can be time-consuming, stressful and expensive.
The investigation can last from days to months wherein you might need to incur the cost of accountancy fees.
Your business may be impacted by interruption & uncertainty.
Preparing yourself for a Tax Investigation
Firstly brace yourself & clear your mind of any dreadful consequences so as to prepare yourself for the Tax Investigation. The Tax Investigation will require your utmost attention & time. You will need to think through step by step. You need to make sure that your accounts for at least the past 4 years from the date of investigation have been kept properly & the returns have been filed on time.
It would be advisable at this stage to get in touch with a Professional who will be able to walk you through this whole process of Tax Investigation by HMRC.
We at LMS are here to ensure you get peace of mind in such a stressful situation.
If you have any questions or doubts relating to HMRC Tax Investigation do give us a call at 0161 864 3824 or e-mail: email@example.com to arrange a free, none obligated meeting, which could take place on the telephone or at our offices.