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Time is Ticking. Are you protected against an HMRC enquiry?
Why is HMRC investigating?
In the UK we live in an environment whereby the taxpayer is responsible for their own tax liability. HMRC opens investigations to see if the taxpayer has paid the right amount of tax on a random or selective basis. All this helps the government fill its ever expanding public finance black hole.
Beware of “Connect”!
HMRC now uses a sophisticated database called ‘Connect’ to start more than 80% of tax enquiries. The system collects data from 30 different sources, including UK and offshore banks, Companies House, the Land Registry, estate agents, the DVLA and other licensing authorities, and social media.
The data can be instantaneously reviewed by more than 3,000 HMRC investigators to produce a financial fingerprint for any taxpayer. If there are any discrepancies between tax returns or business accounts sent to HMRC, a tax enquiry will follow as sure as night follows day. Tax enquiries started from ‘Connect’ have produced billions of pounds in additional tax over the last few years.
Using ‘Connect’, HMRC can now target enquiries more accurately than ever before – but they still get it wrong sometimes. That’s why we will always challenge HMRC regarding their reasons for an enquiry when defending clients.
What could an investigation involve?
HMRC so far has been targeting the SME sector, medical professionals such as dentists / doctors and ‘hidden wealth’ in particular, where HMRC call upon individuals who are apparently living beyond their declared means.
HMRC may have information about an offshore bank account, an expensive asset like a luxury car or even images from Google Earth showing a large extension. Reviewing records upto 6 years old is not uncommon and cost thousands to defend.
When HMRC comes knocking…
Case of mistaken identity
Husband & Wife Partnership sold and installed double glazing were subject to a full enquiry. At the initial meeting HMRC alleged the husband had been dishonest. However by the conclusion of the enquiry HMRC deemed that £129 of tax was repayable by the partnership and apologised, confirming the allegation of dishonesty was a case of mistaken identity.
Accountancy fees were approximately £5,000.
Where our service comes in
If HMRC states its intention to investigate your tax payments don’t panic. Then call us – your dedicated accountant and best defence.
We will translate the many complicated questions the taxman may pose, manage the entire conversation with the taxman, help you submit any required information and minimise the impact on your business or personal accounts.
Why take action?
• Investigations are often at random and come at any time
• HMRC are clawing back billions of pounds by stepping up the number of tax investigations
• Powerful new software can trace even the smallest discrepancy in spending or earnings, prompting an investigation
• The stress and cost of an investigation can be considerable
• Our expertise can save you time and money in the long run
Protect yourself today!
Tax investigations can be costly and our expert support during this process is not covered in your usual accountancy fees.
Investing a small amount into our Tax Fee Protection Policy now means that you will receive complete support if HMRC targets you.
We will manage your case from start to finish, reducing stress and providing peace of mind.
To join, please contact Michael D Nichols Ltd of Maidstone, Kent either by telephone or by using the adjacent contact form.
If you have any questions, or for more information call us on 01622 745629. You can also sign up for our free newsletter.
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