Avoidance Investigations

These include where HMRC believes that a taxpayer has used a tax avoidance scheme that has resulted in a significant loss of revenue, or there are particularly complicated issues to resolve. These investigations typically involve complex or technical tax issues that require specialist input. Offshore tax matters often fall under this category, and require careful handling to secure the best possible outcome for the taxpayer.

Investigations usually begin with HMRC requesting a substantial volume of information and records relating to your financial affairs. We strongly recommend seeking advice as soon as the initial letter is received, and, ideally, before a reply, and any information or documents, are sent to HMRC. We will seek to ensure that an appropriate response is provided to HMRC, and that no unnecessary damage is caused.

Tax avoidance investigations are handled by investigators from HMRC’s Fraud Investigation Service (FIS). These cases are outside the scope of HMRC’s local office network, and are dealt with by senior HMRC representatives. As a result, these investigations require a specialist tax adviser to ensure you receive the most up-to-date and informed advice.

It is important to note that a Code of Practice 8 investigation can escalate to a Code of Practice 9, or even a criminal investigation, if HMRC suspects fraud at any stage.

Berwick Tax has extensive experience in dealing with Code of Practice 8 investigations, and understands how to handle them effectively. We work closely with our clients to assess their individual circumstances, and ensure the best possible outcome is achieved.

If you are under investigation for tax avoidance, we can provide support and advice, helping you understand your options and prepare for the process. Clients regularly seek our guidance on alternative strategies, and how to navigate disputes with HMRC.

Berwick Tax has extensive experience in dealing with tax avoidance investigations. If you require assistance, we are here to help.