HMRC Quadruple Tax Investigations

Recent data published by HMRC showed it opened 102,000 compliance investigations in Q1 2021, up 36 percent from 75,000 in the previous quarter.

This was almost quadruple the low of just 27,000 in the second quarter of 2020.

HMRC is turning its focus back to tax investigations as the pandemic has left it with a lot of catching up to do.

HMRC may check on a person’s tax affairs to ensure they’re paying the right amount.

This can happen to individual taxpayers or businesses.

HMRC will write or phone people to confirm what they want to check and this can include:

  • Any taxes paid
  • Accounts and tax calculations
  • Self Assessment tax return
  • Company Tax Return
  • PAYE records and returns, if you employ people

During a check, HMRC may ask to visit the home of the person they are investigating or their business or an adviser’s office (this may be unlikely with coronavirus still being an issue).

Additionally, people may be asked to visit HMRC and if they are, they can have an accountant or legal adviser with them during the visit.

HMRC may issue a penalty if it sends people an inspection or information notice and the person involved did not send information or refuse a visit.

Should a person think HMRC should stop a check, they will need to write to the office involved.

Following a check, HMRC will write to people to inform them of the results.

Investigated individuals will be:

  • Repaid if they’ve paid too much tax – they may also get interest on the amount they’re owed
  • Asked to pay additional tax within 30 days if they owe more – they’ll normally have to pay interest from the date the tax was due

#taxinvestigations #hmrc

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