An HMRC investigation can be one of the most stressful things you will ever have to deal with. It’s easy to feel intimidated by this powerful tax agency, especially if they treat you unfairly or accuse you of something you didn’t do.
The implications of an HMRC Investigation Cover don’t end once they close the case; they could follow you around forever, negatively impacting your life and career prospects.
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A tax investigation can be stressful, intimidating and overwhelming
An HMRC investigation can cover many different aspects of your tax affairs and can feel like a very daunting process. It is important to remember that being selected for an enquiry does not necessarily mean that you have done anything wrong, but it is still important to take the necessary steps to prepare for and respond to the enquiry in the best way possible.
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What is the first thing I should do?
If you are contacted by HMRC about an investigation, you should first take a deep breath and try not to panic. It is important to remember that being under investigation does not necessarily mean that you have done anything wrong.
Investigators are simply looking into your affairs to see if everything lines up. They will usually make contact with you to clarify any points they may have found, so don’t worry too much until then. However, if you are contacted with any requests for documents or bank details it is important that you comply as quickly as possible so as not to hinder the investigation.
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What if I don’t agree with their assessment?
If you don’t agree with the assessment made by HMRC, you have the right to appeal. This needs to be done within 30 days of receiving the notice of assessment. You can either do this online or by post. However, for complex cases it is usually better to do so by post. In the event that you want your appeal heard in person (which is a complicated process), then it is important that you contact HMRC within six months of their decision on your case and request a paper hearing.
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How long will it take?
No one knows for sure how long an HMRC investigation will take. It could be a matter of weeks or it could drag on for months (or even years). The important thing is to be prepared for the possibility that it could take a while.
If HMRC has targeted your business, make sure you have appropriate insurance in place and that your employees are aware of the potential risks associated with an HMRC Investigation Cover.
