HRMC Compliance Checks

Details

HM Revenue and Customs (HMRC) Compliance Checks is the investigation process where they check thousands of individuals, partnership, and corporate tax returns to confirm the tax amount is accurately paid, and the appropriate level of allowances and reliefs is claimed.

Stages of an HMRC tax compliance check

Taxpayer information notice

The process begins with the information notice of enquiry sent to your partnership or the officeholders of the corporate to inform that HMRC is verifying the various aspects of your tax payment. The letter would also request for the documents and information relevant to the entries on the tax return for further verification of the identified risks and understand the figur

HMRC will require information and documentation related to:

Inspection

HMRC visit your premises on a pre-arranged or unannounced basis to have the compliance check. And as a part of the investigation, the premises, assets, and financial records would be verified; and if you work from home or have the office set up at home, they would investigate your personal property as well.

HMRC could ask to visit your home, business or an adviser’s office. You may have an accountant or legal adviser accompany you during the visit; however, we strongly suggest to get in touch with the specialist to guide you with the timely and well-considered response to HMRC investigation and help yourself, the partnership, or the company to communicate efficiently and avoid further unnecessary scrutiny or questions.

Penalties

When checks are complete, you will be proclaimed the conclusion of the inspection. HMRC will work with the taxpayer to put the things right and collect any penalties, tax adjustments, and interests that are duly.

What should you do on receiving notice of a Compliance Check enquiry?

HMRC compliance checks are normal, and it need not necessarily mean that there is something wrong with your tax payment. HMRC contact you or your client when they have found a specific risk area that they would want to investigate further. You, as the taxpayer, have to co-operate with the HMRC investigation to resolve the issue. Hence getting specialist help will assure in dealing with the matter promptly and efficiently.
When HMRC starts a compliance check on your tax payment, if you feel uncomfortable, have lesser knowledge of the proper approach with HMRC on your own, or feel the information and documentation requested by HMRC is irrelevant or unreasonable, and you sense need an adviser, or specialist assistance gets in touch with us, immediately.
You should submit the paperwork within 30days. However, there are certain opportunities where you could extend the deadlines or amend the wording of the notice, provided HMRC is informed as quickly and appropriately as possible.
To ensure that you are providing reasonable excuses as to why you may not comply or if you believe that the request made is unreasonable to ask for or is irrelevant to the check, please get in touch with us. We will guide and support you with our invaluable backing to protect you at our best.

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