TAX INVESTIGATION

HM Revenue & Customs (HMRC) usually opens an enquiry when they become aware that there is a discrepancy between your records and what they were expecting.

HMRC have a greater reach meaning that they receive information first hand from third parties to build a picture of taxpayer's finances.

HMRC also open random enquiries so your investigation may be one of those.

The length of a tax investigation depends on the type of enquiry - full or aspect, as well as the complexity of the case. It's not unusual for an enquiry to take between six months and two years from start to finish. Working with a reliable accountant will ensure you are able to respond to the tax investigation sooner and have the right records for HMRC. 

 When you first receive a letter from HMRC opening an enquiry, the first thing you should do is speak to an accountant. There is no point in burying your head, speak to an acocuntant first to get started with handling your tax investigation. Then, reply to HMRC with the required information as soon as possible, and before the deadline.