Before instructing us to act on their behalf, many of our clients want to understand the HMRC tax investigation process.

Regular questions are:

  • how serious is my HMRC tax investigation?
  • will I go to prison?
  • how will HMRC deal with me?
  • how long will my HMRC tax investigation take to settle?
  • how much will my HMRC tax investigation cost me in professional fees?

Below is one stop guide; together with the most frequently asked questions our clients ask before selecting us as there tax invetsigation services provider. Our aim is to summarise what happens during a typical HMRC tax ivestigation. We stress this guide is designed to give you a brief over view of the HMRC tax investigation process. At the bottom of this article we include more detailed reading should you require additional information.

HOW DO I KNOW HOW SERIOUS MY HMRC TAX INVESTIGATION IS?

The issuing HMRC office and procedure being used is usually the best indicatation of gravity. Most HMRC tax investigations are issued by Local Compliance. Contact from HMRC Local Compliance will generally come in the form of an:

  • HMRC compliance check
  • Check of self assessment tax return

Should your letter be headed Fraud Investigation Service; HMRC suspect you of more serious tax fraud. They will likley instigate proceedings against you under Code of Practice 9; offering you the opportunity to file a dislcosure under the contractual disclosure facility

HMRC Codes of Practice

The Code’s of Practice used by HMRC are:

  • Code of Practice 8 – How HMRC investigate cases of suspected tax avoidance
  • Code of Practice 9- How HMRC investigate cases of suspected serious tax fraud
  • Code of Practice 11 – How HMRC local compliance carry out a check of self assessment tax return and claims made outside of a tax return
  • Code of Practice 26 – How HMRC deal with overpaid tax credits

WILL I GO TO PRISON?

Criminal prosecutions are rare and generally reserved for the most serious cases of tax fraud. However, if you fail to give a civil tax investigation the respect it deserves and begin to lie or manipulate, you could very quickly find yourself in serious trouble. Specialist tax investigation advice is absolutely key to ensuring that your HMRC investigation is handled correctly.

Please click on the relevant link for more detailed information:

HOW WILL HMRC DEAL WITH ME?

The relevant Code of Practice, will give you some useful background, but as with any process HMRC tax investigations are subject to specific circumstances and other extraneous factors such as the approach and personality of the tax inspector conducting your case. A tax investigation specialist will ensure that HMRC operate within the confines of their powers and importantly ensure that your rights are protected.

HOW LONG MY HMRC TAX INVESTIGATION TAKE TO SETTLE?

This is perhaps the most difficult question to answer. It rather depends on the nature and extent of HMRC’s concerns, your conduct and of course how good your tax investigation adviser is and what their motivation is.

Are their motivations about you? Or are they about securing the maximum professional fees possible?

What we can promise is to seek resolution to your HMRC tax investigation in the shortest time frame possible, with no compromise on quality. Our fees are unbeatable in the industry sector, our fee is structure open and transparent and our average engaged case time to settlement – across tax investigations of varying complexity – is just 6 months.

You may also wish to read our guide to factors influencing the duration of your tax investigation – How long will my tax investigation take?

HOW MUCH WILL MY HMRC IT COST ME IN PROFESSIONAL FEES?

See above and visit our fees page for more information. We will always deal with your HMRC tax investigation on its merits, treat you as an individual and tailor our fees accordingly. You will never pay more than you need to. We have written a comprehensive guide to HMRC settlements which can be found by clicking on the link below.

INTEREST AND PENALTIES

HMRC will to charge you interest on any taxes underpaid from the proper due date up until date of payment. Interest rates vary at just above the Bank of England base rate. This may seem generous, but if you are faced with a settlement spanning several tax years the costs can quickly spiral. Admiral Tax deal with HMRC Investigations every day. It is at the core of our business. We are never distracted by other areas of tax work, so you are guaranteed dedicated, specialist time on your tax investigation case. Please visit our tax investigation services page for more information.

Get in touch

If you have any questions or concerns then please do give our friendly team a call on 0330 999 5000.