How we can help
Tax investigation specialists
Specialist Tax Investigation Advice
As tax investigation specialists, we can give you advice on how to deal with a tax enquiry and can help protect you against unexpected costs.
Have you ever received a brown envelope through the post from HMRC and panicked at the sight of it?
Since 2010, HMRC has invested £1.8 billion targeting those who underpay tax.
Spearheading this approach is an investment in technology that allows tax enquiries to be selected more efficiently and on a larger scale. In addition, HMRC’s powers to investigate have been strengthened.
This combination means that all taxpayers are now at greater risk of being investigated than ever before.
How we can help you during a tax investigation
If you are selected for a tax enquiry, we will always defend you against unjustified questions by HMRC. But you must be aware those detailed questions asked can often be time consuming to answer. The costs of responding to HMRC can be substantial, even if no extra tax is payable.
Our normal annual fees do not cover the additional professional costs of handling tax enquiries and compliance checks. Therefore, we strongly recommend you are protected against such unexpected costs by subscribing to our tax-fee protection service.
Look out for our brown HMRC envelopes with all the information you require to join our tax-fee protection service and do not miss the renewal deadlines.
As always, we are in this together for the long haul.
Get in touch with our tax investigation specialists today and begin your Diamond Journey!
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Diamond Accounts have by far been the most impressive accountancy firm I have ever used. Their knowledge of the taxation system followed by their passion to give the best financial advice possible is an asset to any business.
WHAT IS A TAX INVESTIGATION?
A tax investigation is a formal investigation carried out by HMRC into an individual’s or business’s tax affairs. The purpose of the investigation is to check the accuracy of tax returns, identify any discrepancies and determine whether any tax is owed. There are a number of reasons why HMRC may decide to investigate a tax return, including errors on tax returns, large VAT claims or suspicious activity. Keeping your tax affairs in order is the best way to avoid being selected for investigation.
TAX INVESTIGATION TRIGGERS
There are a number of reasons why HMRC may decide to investigate a tax return, including:
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Errors on tax returns, such as incorrect calculations or missing information
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Large VAT claims or unusual patterns in VAT returns
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Suspicious activity, such as unexplained income or assets
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Whistleblower tips from third parties, including former employees or business associates
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Large cash transactions or payments
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Significant drops in income or rises in expenses
Knowing these triggers can help you keep accurate records and avoid the prying eyes of HMRC investigations.
TYPES OF HMRC INVESTIGATION
Types of Investigation
HMRC carries out a number of different investigations, each with its own focus and scope. Some of the most common types of HMRC investigation include:
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Civil Investigations: These investigations are designed to identify and recover tax, interest and penalties. They can be triggered by errors on tax returns, large VAT claims or suspicious activity.
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Criminal Investigations: These investigations are designed to identify and prosecute tax fraud and other serious tax crimes. They can be triggered by evidence of deliberate tax evasion, false accounting or other serious tax crimes.
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Code of Practice 9 (COP9) Investigations: These investigations are designed to identify and recover tax, interest and penalties associated with offshore assets and income. They can be triggered by evidence of unreported offshore income, assets or gains.
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Fraud Investigation Service (FIS) Investigations: These investigations are designed to identify and prosecute serious tax fraud and other tax crimes. They can be triggered by evidence of deliberate tax evasion, false accounting or other serious tax crimes.
It is important to remember that HMRC investigations can be complex and lengthy, so it is important to seek advice from a tax investigation specialist to achieve the best possible outcome.
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