HMRC enquiry and tax investigation

CMG Accountants are experts in resolving HMRC enquiries and tax investigations for our clients. We can help you respond to any general HMRC enquiry, ensuring that your matter will be handled with care and consideration while still meeting all its requirements.

There is a procedure in place for individuals and companies who HMRC suspects of committing fraud. It can be an incredibly stressful time if you happen to get caught up with this investigation process. However, you must trust your advisers at this point to preserve any legal right that may exist.

Tax investigation:

CMG Accountants will ensure you get the best possible outcome if HMRC is investigating or even just looking into your tax affairs. We can help manage inquiries and ensure all documentation and information is prepared for an investigation.

If you get the letter that informs you that HMRC will be looking at your tax affairs, you must think about how you can respond because if there’s an error, it can impact the penalty that could be due. The letter might provide some clues as to what the HMRC’s priorities are, for instance seeking information about your interest in a bank or capital gain.

CMG Accountants team has years of expertise in this field and will assist you in answering and managing your enquiry to ensure the optimal outcome.

Contractual disclosure facility (CDF):

If you get a letter from HMRC soliciting you to use the CDF, get advice from a CMG Accountants professional because the reason is quite simple: HMRC suspects you have committed tax fraud.

You must act fast, or HMRC will begin an investigation and make a criminal trial in the hope of prosecuting you. HMRC prefers to address tax fraud suspicion via the CDF following the civil procedure as laid out in the Code of Practice 9 (COP9). You will be required to fully disclose the intentional and non-intentional activities that resulted in problems with your tax affairs.

However, the two outcomes to occur from COP9 notice is:

  • If you cooperate fully, the penalties could be reduced. If a legitimate disclosure is submitted, HMRC will look to end the investigation without delay.
  • If you refuse to cooperate, HMRC will take over the investigation, which could result in a criminal investigation and request information regarding your business and financial affairs from third-party sources. The investigation could be detrimental to your suppliers, customers, and other business contacts as they will be targeted.

Tax investigation and disclosure are delicate and intricate, and dealing with HMRC is stressful. But there is a chance for you to avoid being charged with tax fraud if you fulfill all the obligations of CDF and fully disclose all the information required to HMRC.

HMRC campaigns:

HMRC organizes ‘campaigns’ to persuade individuals in specific fields or industries to report undisclosed income or under valued income. As part of a campaign, you’ll be required to calculate your taxes, income, and interest due as well as penalties. Penalties could range up to 20% of the tax owed. If HMRC finds out by themselves, the penalty could be severe with up to 100% of the unpaid tax. Therefore, it is wiser to disclose payments through the campaign to avoid a more significant fine.

Contentious HMRC enquiry:

In general, negotiations with HMRC are simple. But there may be an inconsistency between your point of view and HMRC’s. However, the issue may be related to the disclosure of information or specific to your field of work. Such matters could cause discontent, and that’s why our expertise can be of great help.

We have many years of experience handling complex issues with HMRC with a satisfactory solution for our clients.