There is no doubt that the HM Revenue and Customs are investing huge resources into investigating both individuals and businesses, in order to raise additional tax revenue.
These investigations can begin with:
- Random PAYE/NI or VAT visits
- An enquiry from the Revenue on a particular item in a set of company or sole trader/partnership accounts or a personal Tax Return (known as an aspect enquiry)
- A request to see all the books and records for a particular year (known as a full enquiry)
Investigations can be opened because of an unusual item in the accounts or Tax Return or simply at random. You do not need to have done anything wrong to get an investigation.
One thing is for sure, it can be expensive in terms of professional fees to defend yourself.
We therefore recommend to all our clients that they take our ‘professional fee protection’. We arrange this for individuals, sole traders, partnerships and limited companies.