HMRC investigating you? You do not have to face it alone

HMRC enquiries and compliance checks

HMRC can open an enquiry into a Self Assessment return, normally within 12 months of the date it was filed on time, and runs compliance checks across Corporation Tax, VAT, PAYE and the Construction Industry Scheme. Some enquiries look at a single point; others review your affairs in full. Many begin with a “nudge” letter, for example about overseas income, property sales or cryptoassets. We take over the correspondence, prepare clear and accurate responses, attend meetings with you and keep the enquiry focused on what HMRC is entitled to see.

COP8 and COP9 investigations

Code of Practice 8 is used by HMRC’s Fraud Investigation Service where it suspects a significant loss of tax but not fraud, often involving tax avoidance or complex technical issues.

Code of Practice 9 is used where HMRC suspects tax fraud. It offers the Contractual Disclosure Facility: in return for a full and honest disclosure, HMRC agrees not to start a criminal investigation into the conduct disclosed. The response deadlines are short, normally 60 days to accept or reject the offer and submit an outline disclosure, and decisions made at this stage have serious consequences. Contact us as soon as a COP9 letter arrives.

Voluntary disclosures

If income or gains have gone undeclared, coming forward before HMRC opens an enquiry normally means lower penalties than if HMRC finds it first. We work out what is owed, prepare the disclosure through the right facility and negotiate the settlement:

• Let Property Campaign for undeclared rental income from UK or overseas property
• Worldwide Disclosure Facility for offshore income and gains
• Digital Disclosure Service for other undeclared income, including self-employed income and gains

Schedule 36 information notices

HMRC can issue a formal notice under Schedule 36 to the Finance Act 2008 requiring documents or information, and penalties apply if it is not complied with. We check whether the notice is valid and whether any part of it can be appealed, then gather and provide what is properly required within the deadline.

Penalties, assessments and appeals

Penalties for inaccuracies depend on whether HMRC treats the behaviour as careless, deliberate, or deliberate and concealed, and can be substantially reduced for the quality of disclosure: telling HMRC, helping it and giving access to records. HMRC can also raise discovery assessments, normally up to 4 years back, extended to 6 years for careless behaviour and 20 years for deliberate behaviour. We test HMRC’s figures and its reasoning, argue for the correct behaviour category and the maximum reductions, and where agreement cannot be reached we take the matter to statutory review, alternative dispute resolution or the First-tier Tribunal (Tax).