Tax investigations can be very stressful. With the uncertainties lurking around it, it is something that every business and individuals try to stay away from.
Investigations occur mainly due to late filing of tax returns, late payment of tax, errors and inconsistency in tax returns and so on. In addition to that, deliberate fraud in your part can also trigger an investigation.
If you are chosen for HMRC investigation, then here are some tips to help you through the experience.
Don’t panic and just relax
The minute you receive notification from HMRC about an investigation, you tend to have a nervous breakdown. Although investigations are serious, you have to relax and stay calm. You need to be prepared for any meetings held by HMRC and have adequate answers to their questions.
Come clean
It is best not to lie and hide anything from HMRC because if you do, HMRC will eventually find out. If you tell half truth under any circumstances, it will do you no favours and you will be in serious trouble. On a worse scenario, you can be treated for prosecution on deliberate attempt.
Don’t destroy the evidence
You shouldn’t hide anything from HMRC so if you have any evidence like paper works, destroying them is the last thing you need to do. In case if HMRC suspects that you are hiding more, they can prolong your case and investigate up to 20 years.
Get a professional accountant
When you are investigated by HMRC, getting an expert advice from a professional specialist accountant or adviser can reduce the stress you go through during investigation. Even though they are expensive, it is worth it in the long run. Not only your accountant will tell you what you need to do to deal with HMRC, but also manage to keep you out of jail in extreme cases.
After you are settled with investigation, do not re-offend again. If you end up doing offending again, HMRC will be harsher on you than before. You can be ‘named and shamed’ on HMRC’s website which is certainly bad for your reputation.
Those who have come under the close inspection of HMRC, do learn all these things to know what spot light you have gotten into.
Harley Street Accountants is an accountancy firm with a group of tax accountants who can advice you on HMRC investigations. For details, write to us at info@harleystreetaccountants.co.uk.
