HMRC can open an “enquiry” into your tax affairs. This means they can ask questions and ask to see your books and records.
Clients tend to require professional help in dealing with these enquiries, which can typically take up to 24 months to conclude.
We have dealt with numerous enquiries and are experienced in this area.
An enquiry can commence for many reasons:
- You may be engaged in a cash based business and HMRC seem to assume that all income will not be declared.
- You may work in a profession or trade that HMRC are specifically targeting. In the past they have targeted trades people, certain retailers and even the legal profession.
- The profits from your business might be below the “average” for your business type, therefore HMRC might open an enquiry to discover why.
- You might just be unlucky!
Due to the time (and therefore the cost) it takes to deal with an enquiry, we offer clients the opportunity to join our Fee Protection Scheme. This scheme covers our costs in dealing with an enquiry, including using outside experts if required. Of course, it doesn’t cover the cost of any unpaid tax!
There is a modest annual premium to pay and more information can be provided if required.