HMRC officers are under pressure to collect more tax so they initiate tax investigations into the affairs of individuals (sole traders or in partnerships), companies, not for profit organisations and trusts.
Tax Investigation Help
Few of these investigations are opened on a purely random basis but the vast majority are selected where HMRC believes that there is a reasonable possibility of collecting additional tax liabilities.
The Tax Inspectors have access to a wide range of information and will base their risk assessment on a number of different factors. These could include:
⇢ Third-party information e.g. interest received from the bank or building society
⇢ Property information from Stamp Duty Land Tax Returns and the Land Registry
⇢ A critical analysis of the accounts of the business
⇢ Wealthy individuals and successful businesses face increased scrutiny
⇢ Malicious information provided by informers
⇢ Using software known as Connect, which draws a huge amount of data not only from Government sources, but other open sources such as Facebook and Ebay.
The software also identifies connections or patterns in the data. For example, it will reveal all properties listed in the name of the taxpayer and those listed as living in those properties who are claiming housing benefits.
HUSA: We'll Ease the Pressure
At HUSA Accountants, we understand that a tax investigation is extremely stressful, time-consuming and disruptive. We will explain the process to you, advise you and make the investigation more manageable for you by representing and defending your interests.
If tax, interest or penalties are due, we will strive to negotiate the lowest settlements with HMRC on your behalf and represent you at the Tax Tribunal. Our aim always is to resolve the matter with a minimum of fuss and cost by securing a settlement at the earliest possible date.
Tax Investigation Advisors
Whether you have been approached for a record check, compliance visit, intervention disclosure, or an investigation by any other name, our team can help. Because of our experience, we know what HMRC are looking for, we can often get to the bottom of issues, source evidence and get cases resolved with minimal disruption to you. In addition to income, corporation, capital gains, VAT and inheritance tax, we have significant experience in managing employment disputes, IR35 enquiries and offshore disclosures.