HMRC Investigations Service

If you’re under investigation by HMRC, we understand that the process can feel overwhelming. Whether you’re an individual paying personal tax or pay business tax, understanding HMRC’s powers, the risks involved, and why enlisting a specialist tax advisor is crucial. At RMT, our expert team is here to guide you through the complexities of HMRC tax investigations and work towards favourable outcomes.

Understanding HMRC’s Powers

HMRC has extensive powers to carry out tax compliance checks, investigate your tax affairs and ensure that you comply with UK tax laws. They can scrutinise your tax affairs from income tax to capital gains. Here are some of the key powers HMRC has when conducting a tax investigation and investigating your affairs:

1. Requesting Information: HMRC can request a vast amount of information, including bank statements, invoices, receipts, and financial records. They may also ask for explanations of specific transactions.
2. Imposing Penalties: If discrepancies or underpayments are found, HMRC can impose penalties. These can range from minor fines to larger penalties, depending on whether HMRC deems the error as accidental or intentional.
3. Conducting Interviews: In certain situations, HMRC may choose to interview you to better understand your affairs. These interviews could be formal or informal and can sometimes take place under caution, making it essential to have professional support.

The Risks of an HMRC Tax Investigation

Facing an HMRC tax investigation is a serious matter, and the risks involved are far-reaching. If you are under investigation, the potential consequences include:

• Financial Costs: You could be required to pay back any underpaid tax, along with interest. In addition to this, there may be a time limit for repaying this underpaid tax, so HMRC can impose severe penalties for late payment or inaccuracies, which could significantly increase the amount owed.
• Time and Disruption: The process of providing documents, answering queries, and possibly attending interviews can be time-consuming, stressful and disrupting.
• Criminal Charges: In extreme cases, if HMRC suspects deliberate fraud or evasion, they may bring criminal charges and begin a criminal investigation. This can result in fines, legal fees, and the possibility of a prison sentence for those found guilty of serious tax evasion.

Why Engage a Specialist Tax Advisor During an HMRC Investigation?

Navigating HMRC investigations on your own is not recommended. The process is complex, and mistakes can be costly. Engaging a specialist tax advisor from RMT offers several significant benefits:

1. Handling HMRC Communication: Our team will handle all communications with HMRC on your behalf. We’ll ensure that all deadlines are met, and that your responses are accurate and appropriate. You won’t have to worry about managing the stress and complexity of dealing with HMRC directly.
2. Reducing Penalties: If discrepancies are found in your tax affairs, we will negotiate with HMRC to reduce the penalties. Often, penalties can be significantly lowered if you have made a reasonable effort to comply with tax laws, and we can help you present this case effectively.
3. Providing Peace of Mind: An HMRC tax investigation can be daunting, but with a specialist tax advisor on side, you’ll have peace of mind knowing that your case is being handled professionally.
4. Proactive Risk Management: Even if you are not yet under investigation, we can perform a review of your previous tax filings to ensure that there are no red flags that could trigger an investigation in the future. By identifying and rectifying any potential issues early on, we can help you mitigate the risks of an HMRC tax investigation.

How We Can Help You Navigate HMRC Tax Investigations

At RMT, we offer a tailored HMRC Investigations Service to guide you through every step of the tax investigation process. Whether you’ve received an initial enquiry or are facing a full-scale investigation, we are here to help.

Our services include:

• Representation in Interviews: We can accompany you during HMRC interviews, ensuring that you’re fully prepared and your rights are protected.
• Appeals and Dispute Resolution: If you disagree with HMRC’s findings, we can help you challenge their decision and potentially reduce penalties.
• Tax Advice: We’ll assess your current tax situation and advise you on the best course of action to minimise the impact of an investigation.

Take Action Today – Contact Our Expert Tax Advisors

If you are under HMRC tax investigations or concerned about the possibility of one, don’t wait to get in touch with our team of specialist tax accountants in Newcastle upon Tyne. We can support you throughout every step of the HMRC tax investigation process and answer any questions you may have.

Contact us today to schedule a consultation with one of our specialist tax advisors. We’ll provide clear, practical advice and work to ensure the best possible outcome for your case.

Frequently Asked Questions (FAQs)

What should I do if I’m under investigation by HMRC?

If you are under investigation by HMRC for any reason, including income tax or a self assessment tax return, it’s important to engage a specialist tax advisor as soon as possible. Our team at RMT can manage the communication with HMRC, help mitigate penalties, and ensure your case is handled professionally.

A specialist tax advisor can provide invaluable support in managing HMRC communications, negotiating penalties, representing you in interviews, and ensuring your tax affairs are fully compliant.

What are the penalties for non-compliance with HMRC?

Penalties for non-compliance with HMRC can vary depending on the nature of the underpayment or error. Should HMRC believe there is evidence of deliberate non-compliance, a criminal investigation may be carried out. Penalties can range from fines to more severe charges in cases of fraud or tax evasion. A specialist tax advisor can help reduce these penalties by demonstrating your efforts to comply.