What to Do If You Become the Subject of a HMRC Investigation

HMRC Investigation

We recently reported that the HMRC crackdown that has been in progress since 2011 will continue into the New Year, but what should you do if HMRC comes a knocking? As a small to medium sized business or sole trader, managing your own accounts can be particularly daunting and as a result you may not be declaring your income as accurately as you could be, leaving you open to being targeted for evasion.

As a leading accounting and bookkeeping specialist serving the North East of England, we provide a wide range of accounting services for those looking to bring their tax affairs up to date. Here we provide essential advice for those who have been approached by HMRC as part of the crackdown and simply don’t know where to turn.

Keep calm

We understand that keeping calm is easier said than done when the experts at HM Revenue & Customs come calling but handling the pressure that goes hand-in-hand with these investigations and not buckling to panic is important. Yes, these investigations are serious, whatever the scale of your inaccuracies, but approaching a resolution with a level head and support from a qualified accountant certainly helps.

Your first contact regarding the investigation is likely to be by post, and HMRC will do all they can to get a quick response. Remember however that HMRC is there to help small businesses get their tax right so penalties don’t have to be enforced.

Understand the enquiry process

As we’ve mentioned all investigations are serious, but they are categorised as either aspect, full or random. Understanding the level of enquiry you are being subjected to will help you get a firm grasp on what’s ahead for you and your wider company, as well as adhere to step one!

Enlist an accountant

Having professional help to keep your feet on the ground during a HMRC investigation is invaluable. HMRC actually recommends that businesses of all sizes seek help from an accountant to ensure expert knowledge can be sought during this difficult time. Our accountants have experience assisting with all levels of HMRC enquiries, and can help you fight your corner, get your tax affairs in order and safeguard your business from future investigation with expert bookkeeping services.

Whether you have been contacted by HMRC or simply want to fine tune your bookkeeping processes, contact us today on 0191 251 7599 for further advice and assistance.