What is a Tax Investigation
When HMRC make enquiries into your tax affairs
Many tax investigations are random. Unusual fluctuations, unannounced accounts and random spending can also prompt an enquiry into individuals and companies.
The tax man has the power to inspect business documents and assets at your premises, ask for documents and information, make unannounced inspections and go back up to six years to investigate matters.
Disruptive, intrusive and expensive - when HMRC investigates it can drag on for a year or more, creating mounting costs and rocketing stress levels.
And HMRC is upping its game…
£900 million has been allocated to target tax evasion, in a bid to fill the public finance black hole.
The HMRC recuperated £26.6 billion worth of tax last year, with 1,289 of these investigations resulting in prosecutions.
Powerful new software can trace even the smallest discrepancy in spending or earnings, prompting an investigation into individuals and businesses.
What could the HMRC discover about you and your business?