Company Tax Investigation
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Medium-sized businesses are increasingly targeted by HMRC, who can access data from their debit/credit card transactions and use it to open up investigations into them. However, HMRC is increasingly going after small businesses, as they are the ones who are most likely to make mistakes. Landlords and people declaring capital gains taxes or bank/building society interest are also increasingly at risk of a HMRC investigation.
Compared to 5 years ago, HMRC now brings in an extra £10.3 billion in revenue every year, with this number only increasing. It does this by targeting businesses and individuals who it believes may be underpaying their taxes. Although some taxpayers may be deceiving HMRC, if you come under this scrutiny, you will have to pay legal costs whether you’re innocent or not.
At Goodmen, we will be able to provide you with all the support and advice required in relation to any potential investigations. As experienced and fully qualified chartered accountants, statutory auditors and business advisors, there’s no reason for your tax returns not to be completed accurately and filed on time. And, should an investigation begin, we’ll be there to handle all the necessary details.
What prompts an investigation?
There are a number of reasons a company investigation may be triggered. Among the most common reasons are:
- Returns are filed late on a consistent basis
- Your costs seem excessive within your industry
- Tax returns are inconsistent with your standard of living
- You have a large fax in income or increase in costs
- You operate in a high-risk industry
Of course, in many instances, investigations can be triggered by a simple and honest mistake. Perhaps a rogue typo or a missed expense which is purely innocent. While this doesn’t make the process of investigation any less stressful, you can at least approach the process with honest intentions, and we at Goodmen will be able to support you.
If you believe you’ve made an honest mistake but are not sure what to do next, there’s still time for us to handle the stresses and strains caused by an HMRC investigation. Our accountants in Watford are here for all your accountancy needs, including the smooth administration of tax returns. Contact us as soon as you’re ready to learn more about how we can help you run your business more efficiently.