Tax Investigations & Inspections
Tax investigations and inspections
Even if your tax compliance is perfect, you might face tax investigations or inspections from time to time. For example, a VAT-registered business can expect a routine tax inspection every few years, checking your tax compliance systems.
An in-depth tax investigation is more likely if your business is in an industry that HM Revenue & Customs (HMRC) has chosen to focus on. HMRC occasionally targets an industry where they suspect tax compliance is poor. Apart from that, you can minimise your chances of a tax investigation by ensuring that your own tax compliance is as efficient as possible.
If you are notified of a tax investigation or inspection, you may want to take advice or have your tax adviser present during the visit. Professional advice can be particularly useful if you face a tax investigation (as opposed to a routine tax inspection).
If you know you have made tax errors in the past — accidentally or deliberately — you may want to discuss this with your tax adviser. Voluntary disclosure may be a better option than waiting to be caught out by a tax investigation.
TAX INVESTIGATION PROTECTION