HMRC Enquiries

HMRC enquiries usually stem from an area of tax where there is currently a perceived risk. The tax authorities have significant powers to validate entries on tax returns and to make both formal and informal requests.

It is unusual for HMRC to launch an enquiry at random, they are usually looking into areas where they have identified a risk to the tax authority.

HMRC have a huge resource in their ‘Connect’ system, which holds a huge among of data on taxpayers. They use this system to risk-profile individual cases for selection for a tax enquiry.

HMRC may contact specific individuals or businesses with an enquiry into their tax returns, or they could send a ‘nudge letter’ to a group of businesses or individuals that they have identified as potentially being high risk.

A nudge letter is not an enquiry but should be considered a prompt to look in detail at your taxes to make sure the returns have been submitted correctly, and that there are no overdue liabilities.

Knowing what HMRC can or cannot request is important to ensure minimal disruption and the correct end result is achieved.

A discrepancy in one year can often lead to assessments for prior years, and it is therefore essential that an individual or business under enquiry engages with a tax professional who is suitably qualified to deal with these matters.

We can assist in such enquiries to ensure HMRC do not overreach their powers and that the enquiry can ultimately be resolved. We will manage the process from start to finish to ensure the best possible outcome.

Our Tax Enquiry Services

We can assist with enquiries across a huge variety of taxes, including:

VAT Compliance Reviews

HMRC carry out VAT compliance reviews to ensure a business is correctly calculating and remitting VAT and adhering to relevant laws and regulations.

Employment Compliance Reviews

With ever changing complex legislation to deal with, HMRC compliance reviews often unearth problems.

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Corporation Tax

HMRC reviews into corporation tax make sure that the correct amount of tax has been paid by a company.

Income Tax

An individual’s income tax contributions can also be investigated by HMRC to make sure their tax liabilities have been met.

Student Loan Repayments

HMRC might look into student loans to ensure that an individual is meeting their repayment obligations related to their income.

Job Retention Scheme

The Job Retention Scheme was an incentive set up during the Covid-19 pandemic. HMRC are looking into fraudulent and incorrect claims.

Capital Gains Tax

HMRC want to make sure that the correct amount of tax has been paid when disposing of property and other assets.

CIS

The Construction Industry Scheme is a tax deduction scheme for those in the construction industry. HMRC will be looking out for discrepancies in reporting, non-compliance, or and fraudulent claims.

Eat Out to Help Out

Another scheme launched by the government during covid-19; HMRC are looking into Eat Out to Help Out claims to ensure there has been no fraudulent activity.

Code Of Practice 8

It is important that care is taken with a COP8 enquiry as, unlike COP9, there is no guaranteed protection from criminal investigation.

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Code Of Practice 9

Code of Practice 9 (COP9) is a form of tax enquiry opened only when HMRC suspects a substantial loss of tax is the result of fraudulent activity by a taxpayer.

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