HMRC has increased the number and scope of its investigations into the tax affairs of individuals, particularly focusing on high-net-worth taxpayers and those with international aspects to their affairs.
This, combined with HMRC’s extensive information powers, make it more important than ever that taxpayers are supported through HMRC enquiries. With pressure to close the tax gap and maximise revenues, there is increased investment in tax investigations and the frequency of HMRC enquiries is rising.
To speak with our specialist tax dispute resolution team in confidence, please contact us via our dedicated mailbox at taxdisputes@pkf-l.com.
We can help you with:
- HMRC compliance checks
- HMRC investigations
- HMRC nudge letters/HMRC campaigns
- Voluntary disclosures
- Tax disputes
Routine enquiries
HMRC enquiry notices might be unwelcome and cause anxiety, but there is nothing to fear if you have experts on your side. We will identify any tax exposure and help work with you to understand the nature of the information requested and whether this is reasonably required. Understanding your tax position and making a clear presentation of your circumstances are key to reaching a successful resolution.
Complex investigations
Complex investigations can be apparent at the outset or may develop from routine enquiries. Having an experienced tax specialist representing you will show HMRC that you are taking your obligations seriously and help resolve the enquiry as smoothly as possible.
HMRC might invite you to a meeting, although this may not necessarily be the best way to resolve matters. We can advise you on the most appropriate course of action and attend meetings with HMRC if necessary, after reviewing your position.
Nudge letters
HMRC often launches campaigns targeted at taxpayers with a particular source of income, or operating within a specific industry. These are areas that HMRC views as having a high risk of non-compliance.
In recent years HMRC has increasingly used non-statutory letters, usually prompted by information received, to encourage taxpayers to disclose undeclared income or gains and omissions from tax returns – ‘nudging’ them towards compliance.
Voluntary disclosures
It is not unusual for taxpayers to identify historical discrepancies in their tax affairs that HMRC need to know about. By making voluntary disclosures to HMRC, individual taxpayers can receive more favourable outcomes than if issues are identified by HMRC.
We will work with you to ensure you are compliant and advise you regarding making a voluntary disclosure to HMRC, if necessary.
Disclosure facility
Where errors or omissions have been made in past tax returns, we are able to advise on the most appropriate approach in disclosing those matters to HMRC. HMRC now expects most tax disclosures to be made on HMRC’s online portal for disclosures, using its Digital Disclosure Service (DDS).
We can help guide you through all stages of the disclosure process, to ensure it is made in the most appropriate way.
Protecting your costs
Dealing with HMRC enquiries and investigations can be expensive, particularly when they are protracted. A tax investigation could last for several months, if not years, and can be extremely stressful for you.
We offer our clients a fee protection service to help protect against the professional costs involved in a tax enquiry or investigation. This service is backed by an insurance policy we have taken out in our own name and in the event of an enquiry, will cover our costs arising in respect of a tax investigation that is covered by that policy.
Our tax investigation services
We can assist with HMRC enquiries, investigations and tax disclosures covering a wide range of UK tax issues, including income tax, capital gains tax and inheritance tax.
If you’ve received an HMRC investigation or enquiry notice, we will work with you to understand your situation and assess your tax exposure. We will engage with HMRC to communicate your position and resolve any matters of contention.
Where any irregularities are identified, we will work with you and HMRC so your position can be settled and agreed having regard to your individual circumstances. We will advise regarding your potential exposure and negotiate a settlement with HMRC.
We are experienced in working with HMRC to resolve disputes and mitigating exposure to penalties, as well as negotiating how many years HMRC can assess. Understanding the reasons behind any tax irregularities is key to determining how many years can be assessed and whether it may be possible for any penalties to be suspended.
We tailor our services based on your individual circumstances and the nature of any potential tax irregularity.
