There is no doubt that the UK tax system is to say the least complicated. Once HMRC or DWP start up an enquiry then matters become even more complicated. Dealing with HMRC enquiries is not for the faint hearted. HMRC have their systems and given the pressure on them to collect tax, common sense sometimes goes out the window.
What to do when confronted by the dreaded letter from HMRC stating that they are opening an enquiry into your or your company tax affairs:
- Don’t panic!
- Get all your information together and seek professional help.
- If you contact HMRC then advise them you are seeking professional advice and get an extension to any time limit.
- Do not give any further information to HMRC unless it is cleared by your professional advisor.
With the focus of HMRC resources being targeted towards compliance then it is essential to review your affairs to see the reason you have been selected for an enquiry.
There are two types of Self Assessment enquiries. The first is called an aspect enquiry. This usually deals with one or two details that HMRC wish to check and can usually be dealt with quickly. It could be clarification on a capital gains computation or proof of an investment made. These are usually with employees on a random basis.
The second is what is termed full enquiries.
These will call for the following information:The financial and management accounts.
- The books and records of the business.
- Bank statements.
- Specific information relating to that trade.
Just complete the enquiry form and one of our consultants will get back to you within 24 hours.