Enquiries from HMRC can take a number of forms spanning a simple spot check on your self assessment return, a question arising on a specific aspect or looking into an omission or error up to the far more serious matters of fraud and tax evasion.
Most people are naturally concerned if they are contacted by HMRC regarding a Tax Enquiry and it is often better to take the advice of a professional rather than try to deal with this unaided. One lady we helped had decided to deal with the Inspector herself and answered his questions incompletely. When the Inspector discovered that his questions had not been fully answered this clouded his view of the client and led to a Full Enquiry which could have been avoided.
For the more straightforward cases where HMRC simply need clarification of a single aspect – such as the omission of a bank account or a taxable benefit on a Tax Return we will deal with the correspondence for you. Normally this is easily resolved and HMRC will settle for tax plus a fixed rate penalty and interest.
Penalties are on a sliding scale dependent upon the seriousness and gravity of the offence with the highest penalties being imposed where the Inspector decides that there has been a deliberate attempt to evade tax.
For the most serious cases the penalties will be high – HMRC have the power to charge a maximum penalty of percent of the unpaid tax – and they also have the right to publish their findings which may be detrimental to you personally and to your business.
We have helped client through all types of Tax Enquiry and will offer help guidance and support throughout the process.
SBN Tax & Accounts Services Ltd 