With all of the major taxes now being self-assessed,
the likelihood of a taxpayer being subjected to a tax enquiry
has never been higher. Once a tax return has been submitted, both
tax authorities work on the basis of "process now, check
later". In addition, both authorities have continually increased
the level of resources they allocate to this area of tax compliance.
Such enquiries take the form of:
- VAT Control Visits,
- An examination by HM Revenue & Customs or the Contributions Agency
into Employer records (PAYE, NIC, Benefits in Kind, Employment
- An enquiry into a Income Tax Self Assessment Tax Return (which
includes Capital Gains Tax),
- An enquiry into a Corporation Tax Self Assessment Tax Return.
Our primary aim is to act for clients in a manner
which reduces the risk of them being subjected to a tax enquiry.
Although most enquiries are selected on a risk basis, many are
either randomly or rotationally selected. In all instances, it
is often useful to instruct us to perform a tax
healthcheck on your records, first, to prepare for anything
untoward that might come to light during the enquiry. This will
then give you the opportunity to prepare for the Inspector's questions,
or to make full disclosure in advance.
Agreeing your tax liabilities with the tax authorities
is principally achieved by completing and filing the appropriate
tax returns. Clients who are fearful that their tax affairs may
be enquired into, may wish to consider taking out our
fee protection insurance before they submit these tax returns.
Statistics for 2005/6.
Dealing with a tax enquiry is both complicated and
worrying. Instruct our tax specialists, which include ex-Inspectors
of Taxes, to act in your best interests and put your mind at ease.
As well as explaining procedure and bringing matters to a close,
we shall also advise you on how to minimise the additional tax
liabilities, interest and penalties that usually arise from such
a tax enquiry.
Practical Examples of our Tax Enquiry Expertise
- Acting on your behalf when your benefit in kind disclosures
are being investigated.
- Attendind your premises and assisting you during a VAT
control visit from HM Revenue & Customs.
- Taking over from another Accountant, mid enquiry, to
bring the enquiry to a speedy and certain close.
- Answering questions from the Contributions Agency after
they have reviewed your payroll records.