Tax Investigations

HMRC investigations can happen to anyone at any time. We understand that as a business owner, the possibility of being identified for an investigation is worrying and the time consuming nature of being investigated can leave you feeling concerned, confused and ultimately stressed; but the Wilson Partners team is here to help.

We aim to give businesses and individuals peace of min by reducing the possibility of being investigated and mitigating he impact on you and your business, should an investigation arise.

Tax investigation fee protection

Since the 2020 Covid pandemic we have seen HMRC intensify their efforts to combat tax evasion, ensure compliance and ultimately collect additional tax revenue. At present, even if you have submitted your tax return on time and are confident in the accuracy, you are still at risk of an enquiry.

The number of businesses and individuals being investigated is on the rise. HMRC receives huge amounts of information from third parties at home and abroad from the ‘Connect System’, a sophisticated system capable of cross referencing multiple transactions against tax return data. In addition to this, the number of individuals and businesses randomly selected for an enquiry is on the rise – it is becoming increasingly difficult to prevent or avoid an investigation.

Due to the increasing risk of an investigation, all Wilson Partners clients are covered (unless they choose to opt-out) by Tax Investigation Fee Protection to protect you from the financial impact of an investigation.

Keeping everything in order

Despite it being increasingly difficult to avoid or reduce the possibility of being investigated by HMRC, it is best practice to ensure your records are in order and correct. For peace of mind, the Wilson Partners team can review processes and systems for problems including VAT, provide PAYE health checks and advise on tax implications of one-off transactions. We can proactively manage an issues by changing any processes that need improvement and, if necessary, make a disclosure to HMRC.

Voluntary disclosures and nudge letters

It is not uncommon, nor unexpected that occasionally a taxpayer makes mistakes. Alongside formal investigations, HMRC offer opportunities to flag and amend tax information submitted.

If you are aware of a mistake, the best approach is to make a voluntary disclosure. We can help and advise you through the disclosure process and undertake any negotiations with HMRC to achieve the best possible outcome. We will aim for you to avoid a formal tax investigation.

HMRC may also send a nudge letter when they have identified discrepancies between information received and filed tax returns. If you receive a nudge letter it does not necessarily mean a previous tax return submission is incorrect, however as a client of Wilson Partners we would conduct a thorough review of your affairs to determine whether a disclosure is required.