Templeton Brook Witt knows that the words “tax investigation” have the power to incite instant dread to any individual or company. However, the chances are high that at some point in your tax-paying life, you will hear these words. At Templeton Brook Witt in London, we understand that as stressful as this process can possibly be, that it doesn’t need to be. If you have been keeping the correct accounts, especially as a business, then this process is usually not something to be overly worried about. Although, it pays to be prepared and to have an expectation of the process before it commences. Furthermore, having top tier tax investigators such as Templeton Brook Witt on your side will vastly ease the burden of the investigation.
Tax investigations, first and foremost, are initiated by HM Revenue and Customs (HMRC) when they decide to take a closer look at your business’s finances. This could be due to something in your tax return, or a more comprehensive investigation into your overall tax affairs. You will know that you are being investigated through notice of a letter, usually in a brown envelope, labelled “HMRC”. Having a trusted tax advisor such as Templeton Brook Witt take a look at your letter can help you to gauge the severity of the investigation.
It is important to note that
tax investigations are a process that you have to comply with legally, even though it doesn’t necessarily imply that you have done something wrong. There could simply be something in your finances that doesn’t make sense to HMRC, that is easily rectified by providing a document, for instance. Additionally, HMRC has the right to scrutinise your current, as well as historic tax contributions, meaning that proper record keeping within your company is crucial. Be prepared to submit documentation such as bank statements, sales invoices, payroll records, expense receipts, VAT records or even job quotes. Templeton Brook Witt can help your business to prepare the necessary documents that are required.
HMRC tax investigations aren’t aimed at punishing businesses who make honest mistakes. In fact, certain behaviours that are actually innocent can appear suspicious on paper, until properly explained. It is important to note that a
tax investigation can last anywhere from 3 - 16 months, depending on the scale of the investigation. Based on the nature of the investigation, HMRC may only ask for a document or two, or they could deep dive into all your historic accounts. Templeton Brook Witt knows that as a business, it is in your best interest to always be prepared for various degrees of a
tax investigation.
Tax investigations can be triggered by various factors, such as omissions and mistakes, where you may have forgotten to tick a box on your tax returns. This could also be a case where you have paid too much or too little, or perhaps forgotten to submit a certain supporting document. HMRC also has certain target areas where they proactively look at tax shortfalls or certain tick boxes on tax returns; you could fall within this sector. HMRC also has certain factors that trigger their risk-based selection process, which can include cash trades, or large sums of money transferred between the business and owner’s bank accounts. Templeton Brook Witt has experience in dealing with various different tax investigation scenarios.
A
tax investigation can be launched if HMRC is suspicious of you, however, there is almost always a cause for suspicion, such as high expenses compared to your income, or consistently submitting your tax returns late. It is important to know that if you are found to make mistakes, that you might be liable to pay a fine. However, if your company is conducting business by the book, you usually have nothing more serious to worry about. Templeton Brook Witt Tax Specialists can help your business survive a
tax investigation from HMRC. Our expertise and experience help you to stay calm and collected, while ensuring that the correct procedure is followed in line with HMRC. Get in touch with Templeton Brook Witt in London today if you need expert tax advisors to assist with a
tax investigation.
Your Trusted Advisors
Based in the landmark St. Mary Axe, Templeton Brook Witt provide specialist tax investigations, compliance advisory and employment dispute advice to private clients and corporates.
0207 889 1000
info@templetonbrookwitt.com
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London
EC3A 8BF
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