Tax Investigation

Are you concerned about a Tax Investigation?

HM Revenue and Customs (HMRC) no longer need a reason for opening an enquiry into your business or personal affairs – everyone is at risk of a tax investigation. HMRC can go back through at least four years’ worth of accounts and tax returns and your accountant will be required to get heavily involved.

  • There is a proportion of businesses that are investigated at random.
  • HMRC do not give a reason for an investigation?
  • The average length of an in depth accounts investigation is 18 months?
  • Accountancy fees for dealing with the investigation could exceed £5,000?

So who is at risk?

Every sole trader, partnership and limited company is at risk of tax investigation under Self Assessment.

All large employers are likely to have a PAYE or NIC audit visit every 5 years which may lead to an investigation into expenses payments, P11D returns and the status of subcontractors.

All VAT registered businesses are also at risk with 46% of control visits resulting in additional VAT being payable.

Protecting your business from tax investigations

At Forrester Boyd our specialist tax team can provide advice and representation for your business should HMRC select you for an investigation.

We can also provide a specialist tax investigation service which is backed up by an insurance policy the practice has taken out with Abbey Tax Protection. Forrester Boyd is able to make a claim under the policy in respect of fees incurred on behalf of a client who has subscribed to the service for:

  • Business tax investigations
  • Employer compliance disputes
  • IR35 disputes
  • VAT disputes

Download our Tax Investigation leaflet.

For more information please do not hesitate to contact us.