Tax Investigations
Each year, HMRC initiates various types of inquiries into a wide range of tax matters, with almost unrestricted authority to do so. These inquiries can either conclude with HMRC confirming the accuracy of the taxpayer’s return or escalate into detailed and lengthy investigations, potentially resulting in additional tax payments, late payment interest, and penalties. Our tax investigation service can assist you in managing any HMRC tax investigation you may face.
We can assist you with taking the pressure out of a HMRC tax investigation enquiry
Providing you with the support and expertise required to deal with HMRC, our team of tax experts can challenge HMRC on all aspects, whether it is a discussion about technical matters relating to your tax position, or where HMRC are not following the correct procedures they are required to when conducting an enquiry.
HMRC Compliance Enquiries
Each year HMRC open a number of different types of enquiries into a broad range of tax matters and have an almost unrestricted ability to do so. These can amount to nothing, sometimes with HMRC confirming that the taxpayers’ return is correct, or it could lead to a detailed and lengthy enquiry resulting in the taxpayer having to pay further tax, late payment interest and penalties. We can also assist where you need to put things right where HMRC have not been in contact with you on those matters previously. Making a voluntary disclosure to HMRC where you know there has been previous underpayments of tax will result in lower penalties being applied. A full disclosure can also help to reduce the costs to put things right, rather than be involved in a lengthy enquiry with HMRC if they were to approach you first We have summarised the main areas where there can be interaction with HMRC and how our team can help you.
Understanding the Current Prompted, Unprompted & Voluntary HMRC Disclosure Opportunities
For many years, HMRC has offered disclosure opportunities, inviting those with undeclared income to come forward and settle with HMRC… From HMRC’s perspective, disclosure opportunities are attractive, shifting the workload toward the taxpayer, leaving them to check the details, where tax investigation advice may be needed. From the taxpayer’s perspective, disclosure opportunities, while varying in their terms, are preferable to waiting until HMRC opens and enquiry or investigation and offer the chance to mitigate the penalties that would otherwise be imposed.
HMRC Nudge Letters
HMRC’s nudge letters are becoming seen on an increasingly more common basis as HMRC looks to close the UK tax gap between the amount of tax the is collected, and the amount it is believed is not paid due to individuals and businesses not declaring the correct amount that is due. In recent months, HMRC have issued “nudge letters” to the following groups of individuals and businesses:-
Undeclared capital gains on the sale of land and property in 2018/19 tax year
Undeclared income or gains from overseas assets
Incorrect claims under the furloughing (CJRS) or SEISS schemes
Making Tax Digital (MTD) for VAT
Use of the Profit Diversion Compliance Facility (transfer pricing, diverted profits tax, etc.)
This marks a significant increase in HMRC’s activities and it is likely that the subject matters being covered by these letters are going to get broader as the information they receive from the public and private sectors increases. Any individual who needs to make a disclosure of undeclared income or gains on their personal or business side should consider making a disclosure as soon as possible
Fraud Investigation Service (COP8 & COP9)
Where HMRC conduct enquiries under Code of Practice 8 or 9 ,these are serious, invasive and time-consuming investigations that can have serious consequences if mishandled, including escalation to criminal investigation and prosecution. Xperta Tax are experienced with dealing with technical investigations under COP8 where fraud is alleged, as well as the more common tax fraud investigations under COP9, liaising with HMRC throughout to bring matters to a conclusion swiftly and with the least possible disruption to your life.
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