HMRC has never been more focused or organised in its pursuit of additional income from tax investigations. During 2013/14, £9.2bn was collected in extra tax from compliance work, including £286m from the UK’s wealthiest individuals.
HMRC continue to launch further campaigns focussing on areas such as solicitors, credit card sales, second incomes and let properties, with yet more activity planned for 2015/16.
These figures demonstrate that HMRC is pursuing investigations across the board, from large business and wealthy individuals through to buy to let landlords not declaring their Capital Gains tax liabilities.
For more information on Tax Investigations and HMRC activity click here.
To protect our clients, we offer a Tax Investigations Service. The Service covers the representation costs incurred when dealing with certain HMRC enquiries and ensures that if you are selected we will protect you and resolve the situation within the shortest possible timeframe.
We strongly recommend that you subscribe to this valuable service.
CASE STUDY
Four years to prove innocence during tax investigation
A couple were investigated by HMRC into their building company and public house partnership. The Inspector was initially concerned with sales, wages and rental income from the building company and low GPR, private accommodation/food and drawings from the public house.
Following a review of the records, the Inspector was concerned about poor record keeping at the public house and planned a Business Economics Exercise to check the alleged sales. The building company enquiry then began to focus on sales, employee costs, subcontractor costs/CIS and rental income.
The owners were then subjected to a long delay returning the business records during which time the Inspector made an unannounced and unauthorised visit to the owner’s home! The owner refused to entertain the Inspector but was understandably shaken by the experience.
Further delays then occurred with the professional advisor criticising the Inspector for the delays and the failure to respond to previous correspondence.
The enquiry continued to drag on and eventually the advisor demanded immediate closure of the enquiries. HMRC eventually relented with no adjustments to the original returns. Luckily, the professional costs for handling the case were covered under a Tax Investigation package as fees during this time were almost £10,000 simply to prove the client’s innocence!
Enquiry at a glance
- Investigation lasted over four years
- No additional tax was found
- Professional fees amounted to almost £10,000 to prove innocence
The risk of an HMRC enquiry is a reality. Subscribe today and have peace of mind that if you are targeted by HMRC you are protected against the professional costs involved.
For your information pack, please call us on 020 7580 6822 or email richard.hogg@sblaccountants.com
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