If you notice a brown envelope on your desk with a letter inside informing you that you are currently the subject matter of an HMRC tax inquiry. It might be possible that you may be tempted to behave in various ways, which can include running, hiding, falsifying, or ignoring.
Remain strong, take a deep breath and call a skilled/well-qualified accountant. Ignoring documents, correspondence, and information requests at this level can only aggravate the situation. However, with the help of a well-informed accountant taking charge, you might survive a tax inquiry.
While you cannot afford to ignore a tax inquiry, a thoughtful and careful initial answer is vital. Verify that HMRC has the authority to initiate an enquiry in the first place and has done so within the permitted time frames. They typically have one year from the date you file your tax return, but in some instances, the inquiry window may be extended.
Depending on the quality of your records, you may need to search down important personnel involved in a given transaction and/or their records, and it would be better if you begin collating your data as soon as you can.
You'll want to bring your advisor to the meeting. It is far too easy to be intimidated or pressured to say the wrong thing, lose your temper, or be flippant. A skilled advisor will keep you on track and will ensure that the investigator acts reasonably. Verify that someone on your team takes accurate notes and that these are cross-checked against any notes taken on behalf of HMRC.
While prevention is always better than cure, you do not have to face a tax investigation alone, and with the correct guidance and help, it does not have to spell disaster. If you're concerned about a tax investigation, please contact dns immediately.
HMRC calculations are often subject to interpretation and may not always hold up to close examination. The difference that a well-supported and robust counter proposal or an attack on their assessment can make is significant. Still, flaws in the HMRC method are frequently difficult to detect. Similarly, before you sign any schedule of assets or settlement, your accountant should properly review it.
Your advisors involvement will often have more weight than dealing with it alone, and they will then be able to assist you with practical and sometimes complex concerns that occur throughout the inquiry.
While prevention is always better than cure, you do not have to face a tax investigation alone, and with the correct guidance and help, it does not have to prove disastrous. If you're worried about a tax investigation, please contact dns accountants immediately.
If you have any questions or would like specialised assistance on "how to deal with HMRC enquiry letter and help resolving the matter," please contact dns accountants at 03330886686 or e-mail us at enquiry@dnsaccountants.co.uk.
Any questions? Schedule a call with one of our experts.
Sumit Agarwal Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.
Invalid value
The festive season is almost here and this year Christmas party
In the lead up to the 2024 Autumn Budget there was much
The 2023/24 tax year deadline is looming. If you are submitting an
Whether you prefer to meet and speak over the internet, or if you prefer an in person conversation we can help you with your preference.
Stay up-to-date with the latest news affecting small businesses, get business tips and tax saving advice.
From starting a limited company to tax efficiency tips, we've a range of business guides for you to download and keep.
Our experts will work with you to reduce your corporation, personal or any other tax liability, all within the rules of the UK tax legislations. We’ll ensure you’re claiming all allowances and expense claims that you would be elegible for.
We give free software to all of our clients. You’ll be able to raise sales invoices, snap pictures of receipts and be MTD compliant with ease. You can even manage your business anywhere there’s an internet connection, thanks to our mobile app!
Successful business owners are those that are on top of their numbers. Businesses are driven by the numbers behind them. If you’re not reviewing your profit & loss or balance sheet regularly, how would you know how your business has performed and how would you make proper business decisions? We can help you make sense of your numbers.
Limited time only!
Say Goodbye to Bookkeeping Hassles: Nomi offers Free Receipt Processing and big savings!