In an effort to increase returns to the public purse, HMRC have become even more tenacious in uncovering instances of fraud, evasion, and other tax irregularities in recent years. HMRC will often initiate an investigation, or compliance check, if they have reason to believe the business’s tax declarations are not an accurate representation of its true performance.
This could be as a result of a tip-off from an anonymous individual, or else HMRC may be suspicious in a sudden and significant drop in revenue or increase in trading costs. Furthermore HMRC has the right to inspect the books of any limited company, at any time. There does not need to be any suspicion of wrongdoing to justify such an examination, meaning that all companies should be prepared for a surprise visit from the taxman.
If you have been selected for an upcoming HMRC compliance check, or if you are already under investigation, enlisting the help of an expert during these understandably stressful times can provide much-needed peace of mind and allow you to carry on running your business while the allegations are investigated. Seeking specialist advice from those who understand the legislation and are familiar with the latest processes and procedures employed by HMRC can make a huge difference to the ultimate outcome.
Professional advice can not only help protect your business, but can also safeguard your personal position too. A knowledgeable and experienced accountant will be able to analyse your company’s books and may be able to spot areas where your potential liability may be able to be mitigated.
If you have been issued with a fine, or face any other disciplinary action, there are appeals processes which can be followed if you believe there is just reason for disputing the outcome. Such appeals can be made direct to HMRC, and also to external bodies should this be required.