HMRC Tax Investigations and disputes
Our founder has over 20 years’ experience working in HMRC as well as having professional tax qualifications. All of our staff have either HMRC or an accountancy background.
HMRC’s myriad of investigations is supported by state of the art intelligence gathering technology. They know a lot more about you already than you think.
Read more about what information HMRC might have on you here
In between April 2021 to April 2022, HMRC;
Opened 265,000 investigations. That’s 5,096 investigations opened per week on average!
When HMRC sound the ‘horn of war’, it’s time to sit up and respond if you want to win the battle.
Frequently Asked Questions
HMRC carry out a host of different types of investigations typically known as ‘enquiries’ or ‘compliance checks’. These can range from simple requests for information to seek clarifications to civil fraud investigations all the way up to the more serious criminal investigations for tax fraud. HMRC investigate every kind of tax, as well as areas such as ‘furlough fraud’, ‘eat out to help out’ fraud, child benefit as well as student loan enquiries. So it’s not just businesses who can be investigated
Typically there are two main types of the simpler investigations which are known as ‘aspect’ or ‘full enquiry’. An ‘aspect’ enquiry is basically looking at certain aspects HMRC considers to be potentially incorrect. ‘Full’ enquiries are full on all out investigations that will dig deep into pretty much every aspect of your tax affairs.
Some cases can be settled by providing information and explanations. However, often these can be long drawn out and last years! This can be extremely stressful if you try to deal with this on your own.
The majority of investigations will go into a detailed examination of income, profits, expenditure and any other income source, transfer of monies, assets and other sources of income. In these cases it is usual that HMRC will want to formally interview the taxpayer, or visit the business premises. Not only can this kind of investigation take a long time to resolve, it can also seem very intrusive.
This is where Lexicon Tax can step in to shield you from the pressure and stress as well as ensure the best possible results for our client so that you don’t pay more than you should. This is especially important if you have a Code of Practice (COP) 8 or COP 9 fraud investigation for tax evasion. Both of these types of investigations can lead to criminal prosecution and end up with prison time if not handled correctly.
Even an ‘aspect’ enquiry can rapidity escalate to a much higher level as further information comes to HMRC’s attention during the course of the investigation or if the investigation has been mishandled by the taxpayer’s advisor/accountant. This is why it is recommended that you seek Lexicon’s specialist tax investigations advice from the outset of any HMRC enquiry.
How can Lexicon tax Help?
We will be able to risk assess the level of seriousness of the tax investigation being carried out by HMRC by knowing who is leading the investigation and from the nature of the questions being asked.
Our founder Mohammed Nazam worked in HMRC for over 20 years before starting Lexicon Tax. We are therefore in a unique position compared to other tax advisors out there as we not only know the legislation and tax rules but we also understand the processes and procedures followed by tax inspectors. We know when to tell HMRC to back off when they are stepping outside of their jurisdiction. Lexicon Tax will make sure that the HMRC tax inspector carrying out the enquiry does not exceed the powers they are given by law.
Below are the cases we can help you with:
- Tax Fraud Investigations
- Code of Practice 8 Investigations
- Let Property Campaign
- Disclosure of undeclared Income
- Representation at First Tier Tax Tribunal
- Code of Practice 9 Investigations
- Worldwide Disclosure Facility
- Contractual Disclosure Facility
- VAT Investigations
- Disclosure of undeclared Income
Your Next steps
If you have received any kind of ‘enquiry’ investigation letter from HMRC, it’s imperative that you contact our specialist tax consultant team at Lexicon Tax. Do this as soon as you receive a letter and before contacting HMRC. Any calls or letters to HMRC will be recorded and may potentially be used against you. This is exactly where we can help. We will be able to handle everything from the initial call and take the stress and pressure away from the situation. We will take the necessary steps in a confident and structured manner until a full resolution has been reached with expert negotiation on any penalty.
We are best placed to provide the best advice on how to deal with HMRC so that you achieve a settlement as quickly as possible whilst minimising your tax exposure.
If you want to be part of another success story then call today on 01144 000192 for a free assessment of your case.
