• What triggers a tax investigation?

    There are many factors which may trigger a tax investigation by HMRC, but the most common include unusual activity on accounts or even just the nature of the industry in which you operate. The main specific factors which trigger civil tax investigations are major discrepancies in income from one year to the next, your accounts not matching industry norms, frequent late filing of tax returns or your industry being seen as high-risk when it comes to tax evasion. More often, however, compliance checks will occur at random.

  • What happens when HMRC launches a tax investigation?

    HMRC will first send a letter requesting information regarding any perceived anomalies. Once the issue is identified, it may simply be a case that you’ve overpaid or underpaid your tax and will either receive a rebate or be required to make up the shortfall. When HMRC suspects deliberate wrongdoing such as tax fraud, however, they may launch a more serious investigation to be conducted by the HMRC Fraud Investigation Service, which could potentially result in criminal charges.

  • How can Branch Austin McCormick help with tax investigations?

    We usually work to resolve tax disputes through proactive cooperation and engagement with HMRC, resulting in a constructive working relationship, enabling us to deliver positive results for our clients. Where cases are not capable of being dismissed, we will seek early settlement options and we often achieve significant penalty reductions.