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What Happens In A Tax Investigation?

By September 6, 2017Blogs

Knowing what to do when you are expecting a tax investigation, even if you have done nothing wrong, is useful information to have before the HMRC come knocking. If you come unprepared and start to panic during investigations, you may not be organised, leading to penalisation and disruption of daily work at your company.

Coleman & Co can help prepare you for tax investigation in Lisburn and surrounding areas, with accountants who have worked with several businesses and constantly deal with the HMRC.

Contact From HMRC

As a business owner, you will often try to keep contact with the HMRC to a minimal, only submitting tax forms and other details to show your tax payments. But once forms have been submitted, if there is a problem, you will receive contact from the HMRC. This contact will inform you an investigation will be taking place, however there may be little or no detail on why.

You can respond to the HMRC, however you must do this within the deadline that is set – usually 30-35 days. The response must always be in writing, otherwise you will not be responded to.

Reasons For A Tax Investigation

Establishing why there is a tax investigation for your company could be the easiest way to solve the problem. If you are unsure about the reason why your company is receiving an investigation, it could help to seek professional advice, something Coleman & Co will always assist in.

There are several reasons why your company could be investigated by the HMRC:

  • Regular Mistakes On Your Returns
  • Numbers From Previous Years Vary Massively
  • Several Years Of No Profit & No Taxes
  • Omissions
  • No Professional Representation

Accountants can ensure that all tax payments are made correctly using the most modern systems, however simply having professional representation can ensure that your taxes are seen as correct. If you are regularly late with submissions, this could be another reason that you are being investigated.

Coleman & Co will ensure tax payments are made on time whilst being completely accurate, to avoid the issue of tax investigations altogether.

Process Of Investigation

The actual investigation can be a long process, especially if taxes that have been submitted are completely incorrect. A full investigation can often take up to 16 months to be fully processed, whereas an aspect investigation is often between 3-6 months.

During the process, you could be asked to meet with the inspector which could be held in the inspector’s office, your workplace or your accountant’s office. This is usually the simplest way to progress an enquiry and although you may not want to meet face to face with your investigator, it could be the easiest option for you and your business.

What Information Should You Provide For A Tax Investigation?

Although there are number or reasons why you could be investigated, you will usually be informed about what information you will have to provide during an investigation. This could be anything from VAT issues to the profit or non-profit of your business, either way the details must be provided.

You should never dispose of any tax evidence if you believe it could damage your business – disposing of it will only make investigations a more difficult and longer process. If your business has done nothing wrong, it is more than likely the HMRC will have the same conclusion and that an investigation was just precautionary.

When you need help during tax investigations, there is no need to panic. Coleman & Co can support start-up companies and large businesses during tax investigations, ensuring details of tax payments never contain errors.

Contact Us

Get support during your tax investigations by calling Coleman & Co today on 028 9266 3599. We will offer great advice throughout the process and will deal with the HMRC professionally to find the best outcome for businesses in the Lisburn area.

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