Tax Investigations

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.

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.