HMRC Tax Investigation in London

Why me?

A tax investigation can be random, risk based and/or intelligence led. For example, HMRC might hold third party information that doesn't agree with numbers in your tax returns.

HMRC have a range of powers that enable them to verify the declared taxable positions including, but not limited to, forcing third parties to disclose information, sharing of information within government bodies, extensive sharing of information with financial institutions and agreements with governments overseas to share information.

Should I be worried?

It depends! If you owe HMRC tax - you ARE in trouble. You will need to repay the extra tax along with interest and penalties (which could be up to 200%!) Do any of the following apply to you?

  • Making a mistake on your tax returns (typically happens when taxpayers don't seek professional advice)
  • Having a view of the law that differs to HMRC guidance
  • Deliberately understating your income/gains
  • Not declaring income or gains (such as not paying tax on the sale of a property)
  • Avoidance tax (finding legal loopholes to avoid paying tax)

What are my options?


Do nothing

Bad choice. You could end up in court with the judge offering a judgement against you.

Respond yourself

Bad move. Unless you are a tax/legal expert, you could incriminate yourself and/or end up paying too much tax, penalties and interest.

Seek professional advice

The only choice. The value you get is knowledge of tax law and processes, years of training & experience and confidence HMRC will not bully you into submission.

How does an tax investigation come to an end

A number of scenerios can play out:

  • HMRC issue a closure notice, you settle the tax/interest/penalties and that will be the end
  • If you disagree with the HMRC closure notice and want to take the matter to a tax tribunal, you must appeal against the closure notice within 30 days
  • If you reach a stalemate position, you can force HMRC to issue you with a closure notice at which point you appeal within 30 days.

How we can help



Evaluate HMRC's legal basis in conducting the enquiry and advise accordingly

Fact finding

Consider the legal issue(s) in question and determine the facts


Weigh the strength of your case and present you with options


Prepare a response(s) to HMRC, represent you as an agent and negotiate on your behalf

How long does a tax investigation take

It depends on the nature and complexity of the issue at stake. For example, if HMRC want to see evidence of expenditure on machinery, they might request to see invoices and visit your premises and inspect the machinery, this could take 3-6 months. If there is a dispute on the intepretation of tax law, this battle could end up in the courts, a process that could take years.

I don't have tax investigation insurance - how much will the tax investigation cost

It is almost impossible to say. It depends on the nature and complexity of your case. Typically, tax advisors will charge a fee up front and then send a bill each month based on the hours spent dealing with you/HMRC/third parties. If specialist advice is needed, this can be very expensive.

HMRC tax fraud investigations

If you receive a Code of Practice 9 letter and HMRC give you the option to come clean or face proseuction - do not reach out directly to HMRC or give any information because you may incriminate yourslef. Your first step should be to take specialist legal advice. Once you understand your legal position and are clear how you want to move forward, engage a firm of tax advisors.

Will HMRC force me into bankruptcy to settle a tax bill?


Why should I hire a tax investigation tax advisor

To save you tax!

It is not uncommon for HMRC to make a determination an the amount of tax outstanding, most taxpayers become worried and don't want the stress and will agree to make the payment. If you go down this route, you could be giving away your hard earned cash.

How do I reduce the chances of a tax investigation

The chances of mitigating a tax investigation can be maximised by using a tax advisor. With years of experience and professional training, we understand how to make claims, elections and disclosures in the tax returns so that HMRC are satisfied all things have been considered and opening a tax investigation will be a waste of time.

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