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HMRC Tax Investigation - What Next?

Nobody expects an HMRC tax investigation, even if they have a tax professional helping

them, but they can often be an unfortunate part of life and simply paying your taxes. It not only means your suspected of doing something wrong, but it could end up with severe fines and other penalties if it is proven. You will not only need professional tax help with this, but also understand what to expect.

While these investigations seem complicated - and can be, given its nature - you should expect a few specific things during the investigation.

What Triggers an Investigation?

Nobody gets an HMRC tax investigation for no reason, but you might not be sure about what caused them to investigate you. These can vary dramatically from case to case, but there are a few reasons why it might be triggered, including:

● You are working in a high-risk industry

● HMRC Believe you have not declared everything

● Tax returns are not consistent with your living standards

● There are inconsistencies between your returns

It’s also important to note, however, that some tax investigations are completely random.

Types of HMRC Tax Investigation

These random HMRC investigations are just one type of HMRC investigation that usually occur. There are two others. The first of these is an aspect inquiry, in which HMRC is concerned with a specific aspect of your tax affairs and will focus, specifically on that.

The last is a full enquiry, in which HMRC go through all your finances. These are usually only undertaken when there are significant concerns with your taxes.

What Happens During an Investigation?

So, what happens during an HMRC tax investigation? Usually, it involves providing further documents/attending meetings so they can carry out the investigation, and the rest is out of your hands.

There are instances where you can argue with their decision to investigate, however. Usually, this is when you believe their decision is incorrect, and that you should not be investigated in the first place.

If they do investigate, it will usually be because of a discrepancy, and this usually does not lead to anything negative for you. Sometimes, though, HMRC might find something a little less innocuous and will need further information from you.

In these cases, they will request specific documentation/hold meetings with you to perform a more in-depth investigation. The outcome depends on what results turn up because of the tax investigation.

If they find any deliberate wrongdoing, you could face criminal penalties. These vary from case to case, depending on their severity and whether you were cooperative during the HMRC investigation.

Who Can Help Me?

If you feel that trying to manage a HMRC tax investigation yourself would be overwhelming and stressful. Consider putting in place the provision for a tax professional to be available to attend meetings/liaise with HMRC on your behalf, instead of you dealing directly with them.

Protect Yourself from a Tax Investigation

If you are selected by HMRC for investigation, would it not be comforting to have a professional step in and stand between you and HMRC? representing you to achieve the best possible outcome for you. Tax investigations protection puts in place just such protection, providing you access to a team of knowledgeable professionals who are working in your best interests.

To find out more simply request further information by sending an email to us at

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