Tax investigations by HMRC are usually the result of an error on a tax return or inconsistencies in information provided to HMRC, as well as random selection. They may also be the result of a tip off, although HMRC will never disclose the reason for the investigation.
At WAYFINDERS Consulting we understand the pressure a tax investigation puts on people and businesses. Often we are approached by people under investigation who do not understand the tax regime properly which has led to under declaration of taxes.
Tax payers often find it difficult to focus on their business during an investigation therefore we set ourselves deadlines to try and reach a settlement with HMRC. We have a specialist team who deal with tax investigations and we find that the best result is achieved by responding in a timely fashion to HMRC queries, and by providing well presented comprehensive explanations and information in an easy to interpret format.
Also at times the clients do not have some of the information that HMRC request, in this case we think of alternative ways of obtaining evidence to satisfy HMRC. We keep an open line of communication with HMRC and often speak on the phone or attend meetings to clarify issues which through written correspondence may take much longer.
If there has been under declaration of taxes then we work quickly with the client to establish the amount of tax due and advice them to make a full disclosure, so that HMRC penalties can be minimised and possible criminal prosecution maybe avoided. For our existing clients we offer a fee protection scheme so that in the event that they are investigated they do not have to pay for the professional cost, which can expensive.
We were approached by an individual who had carried out a significant number of property transactions over a number of years and grew rapidly during the property boom. The client did not have any previous business experience and given the rapid growth he focused all his energy on running the business.
This led to tax compliance requirements not being fulfilled and an investigation by HMRC. Before the client approached us, the investigation had been ongoing for over 2 years with no end in sight.
We took over the investigation and worked quickly with the client to answer HMRC queries leading to a contract settlement in under 3 months.