The thought of a tax investigation by HMRC (Her Majesty's Revenue and Customs) has the power to put even seasoned business owners on edge. You might think that you've checked every box and dotted every i, yet still get the dreaded call or letter from HMRC. With Templeton Brook Witt on your business’s side, you don't have to go into a tax investigation with anxiety. It's important to understand that you could do everything right, and still be selected for a tax audit due to random selection. Additionally, it's crucial to remain calm and approach the situation with the right facts at hand.
A
tax investigation notification will arrive either via a letter, or a call from HMRC. The notification will outline the scope of the audit, which typically focuses on specific details of your tax return, or business activities. It will also stipulate which time period is under review, as well as the documentation you will need to provide. The notice will also let you know how long you have to submit the necessary documents. Once the correct documentation has been gathered, you should ensure that it is presented in a clear and easily accessible manner.
Facing a tax investigation with the help of professional tax specialists, such as Templeton Brook Witt, can alleviate the stress of the ordeal for a few different reasons. To start off with, an experienced tax advisor can assist you with understanding the scope of the audit. They will let you know if the audit will be a full enquiry, in which the entirety of your businesses records will be investigated. Otherwise, HMRC can request an aspect enquiry, and this will pertain only to certain areas of your business. A random enquiry can also happen at any time, regardless of the state of your accounts.
Tax specialists have been through the
tax investigation process enough times to help your business understand what to expect. Templeton Brook Witt also highly encourages taking the approach of managing your paperwork throughout the tax year, with the submissions in mind. When done correctly, this will help you have your paperwork at the ready, should the time come for a tax audit. This will also help you to explain or back up any discrepancies or inconsistencies that HMRC has picked up during assessment. Templeton Brook Witt will aid in cooperating with HMRC's requests promptly and thoroughly, to expedite the audit process.
Once your
tax investigation documentation has been evaluated by HMRC, they will either agree with your return, or propose adjustments. Should adjustments be suggested, you’ll receive a formal tax assessment detailing the changes, along with any additional taxes, interest or penalties owed. You do have the right to dispute the tax assessment results, in which case you can appeal the decision. However, you will need to follow HMRC’s formal appeal process precisely. This is where the help of professional tax advisors such as Templton Brook Witt can also help you build a strong case for your position.
In conclusion, facing a tax investigation from HMRC can be challenging, but with proper preparation and cooperation, you can navigate the process effectively. Ensure that your business has accurate and well-organised financial records, be honest during submissions, and seek professional
tax specialist advice if needed. Remember that HMRC's primary goal is to ensure compliance with tax regulations, and by cooperating, you can demonstrate your commitment to fulfilling your tax obligations. Stay informed, stay organised, and approach the audit process with transparency and confidence.
Get in touch with Templeton Brook Witt’s expert tax advisors today, if you need any help or guidance on an HMRC tax investigation
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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.
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