HMRC processes all self-assessment tax returns, collecting your income tax and issuing any tax relief.  HMRC carries out compliance checks also known as tax inquiries, investigations, assurance visits, or inspections to make sure that individuals are meeting their tax responsibilities. HMRC investigations can take different forms depending on the issues involved.  HMRC generally use the term ‘compliance check’ to describe any investigation where they are seeking to verify that the correct amount of tax has been paid.  In the case of self-assessment returns, these checks are subject to strict legal procedures and properly referred to as ‘enquiries’.

A tax investigation is usually triggered by a suspicion that you’ve not been entirely honest on your tax return. HMRC’s aim is to eradicate tax fraud and make sure taxpayers’ paperwork is accurate and everyone is paying their fair share of tax. This potential to check self-assessments with an official procedure helps them do their job.

HMRC will contact you to let you know they are investigating your self-assessment tax return via letter or a phone call. It is recommended not to ignore the instructions in the letter. If the communication is suspicious, call an official HMRC phone number and ask for verification.

It is quite difficult to avoid a random compliance check on your self-assessment tax return. However, by getting your tax return submitted online and on time, ensuring all your figures are right, and keeping accurate business records, you can make certain you don’t stir HMRC’s suspicions. It is critical to seek appropriate professional advice or hire an expert as soon as possible if you are facing any type of investigation by HMRC.

If you have received an initial information notice from HMRC and would like to know more about the tax enquiry process, please email info@cheylesmore.com today for reliable and confidential advice from one of our professional advisers.