Tax Investigations

HMRC’s enquiries and tax investigations can take many forms, from reviewing a specific aspect of a tax return to a full examination of business records. For those under investigation, it can be a stressful and challenging experience.

Common Reasons for Tax Investigations

Investigations can arise for various reasons, including:

• Late tax returns (particularly the consistently late submission of tax returns, or several tax returns being submitted at the same time),
• Inconsistencies, or significant variations, between tax returns, such as a sudden drop in income, or a sharp rise in costs
• Higher-than-average expenses, compared to others in the same industry or business sector
• Discrepancies between reported income and apparent lifestyle
• Failure to declare interest on bank accounts, including those overseas
• Failure to declare rental income, or the sale of a property
• Operating in industries considered high-risk, such as cash-based businesses, or sectors targeted by HMRC
• Receipt of information from third parties, including informants, and overseas sources

We do not pass judgement on our clients. Our priority is to minimise the impact of an HMRC enquiry by establishing the facts, representing you effectively, and negotiating a fair settlement if additional tax liabilities are found.

We take both a technical and practical approach. While HMRC has the right to enquire into tax matters, we ensure they operate within the statutory provisions, and follow their own guidance. We stand firm in protecting our clients, and only provide HMRC with the information they are entitled to receive.

With many years of experience, we assess each case individually and determine the best course of action. Whatever the nature of the investigation, we provide clear guidance and work toward the best possible outcome for our clients.

If you need expert support with a tax investigation, contact Berwick Tax today.