HMRC are able to conduct a variety of different types of enquiries to assess your tax affairs - some of which require ALL of your business books and records. HMRC will then trawl through documentation to identify potential errors and unpaid tax. Whilst you may have done nothing wrong, HMRC will make the most of its legal powers to investigate your business, leaving you to pick up the fees for your defence. Costs for a tax enquiry can quickly add up just from handling the various correspondence and meetings with HMRC.
The information below shows the breakdown of a typical investigation:
|Nature of activity||Ave Time|
|Responding to HMRC’s initial information request||= 4 hours|
|Telephone conversation with Inspector to discuss calculations within your accounts||= 1 hour|
|Meeting with Inspector to review the case||= 5 hours|
|Respond to written correspondence from Inspector||= 1 hour|
|Second meeting with Inspector||= 4 hours|
|Correspondence with Inspector to close the Enquiry||= 4 hours|
How would you pay for this representation? Tax Defence means that you don’t need to worry and you will be fully defended by a specialist Consultant for the entire case.