HMRC Corporate & Income Tax Enquiries

With over 100 years' combined experience, we can effectively manage risks & ensure you obtain the best possible outcome.

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For any HMRC corporate and income tax enquiries, please don't hesitate to contact the experts at Pannu Tax for help and advice.

VIDEO - HMRC Corporate and Income Tax Enquiries

Types of HMRC enquiry

HMRC conduct many thousands of enquiries each year into businesses and their owners. It is important to note that very few of these have been selected at random; there will normally be a risk or issue that has been identified before the enquiry is commenced. There are in essence two main types of income and corporate tax enquiries:

  • Aspect - where the inspector is looking at particular aspect of your personal or business tax return;
  • Full - a more in depth enquiry which will cover the entire tax return and the underlying business or financial records.

Both types of enquiry require careful management. In particular, it is not unusual for HMRC to undertake full enquiries on a 'cross-tax' basis. This means that the inspector will want to check the detailed records for all of the taxes you and your business pay (e.g. Corporate Tax, Income Tax, PAYE, VAT etc.) at the same time. These type of enquiries are also referred to as 'Behavioural and Systemic Reviews' by HMRC which reflects the fact that HMRC has commenced a full enquiry for a particular reason or perceived risk.

The prospect of a team of tax inspectors and HMRC officers camping out at your business premises for several days and going through all of your business and personal financial records does not fill many clients with joy. The reality is that a full enquiry or review of this nature can be time consuming, distracting and expensive. It is important that enquiries like this are managed effectively from the start.

If you receive a letter or enquiry notice from HMRC which involves a review of your business records (and, as if often the case, a request for an early meeting with you and your advisor) you may need specialist support.

What should you expect from your advisor?
  1. Our experience shows that early engagement with the lead HMRC inspector is crucial (in both aspect and full enquiries). This helps your advisor to properly understand the nature of HMRCs risks and concerns and helps you to take control of the enquiry process from the start (being proactive is usually a good idea in an enquiry of this nature).
  2. Once your advisor is satisfied that he/she understands why HMRC feels justified in starting the enquiry, he/she should be in a better position to manage (and if appropriate, restrict) any subsequent requests for documents and information. A detailed understanding of HMRCs legal powers to obtain information is required to ensure that this stage of the enquiry is managed efficiently and that 'fishing trips' are avoided.
  3. It is often good practice to agree deadlines and an 'action plan' with the lead HMRC inspector. This helps to avoid any delays on the part of HMRC and ensures that the enquiry is brought to an end quickly and cost effectively.
  4. Have a clear strategy for resolution of the enquiry. This can, for example, mean avoiding the temptation to agree adjustments or issues as the enquiry progresses as this can restrict your negotiating position at the end. You should be comfortable that your advisor is able to effectively negotiate with HMRC.
  5. If additional tax is found to be due, your advisor should seek to minimise or exclude any financial penalties by ensuring that the reasons for any errors are understood and have been properly articulated to HMRC. A detailed understanding of the HMRCs powers to charge a penalty is needed to ensure that you get the best possible outcome.

How Can Pannu Tax Help?

We have a detailed understanding of HMRCs powers of enquiry and extensive experience of helping businesses and their owners manage and conclude all types of tax enquiries and achieve the best possible outcome.

We can:

  • Undertake a review of your systems and records prior to any enquiry or review to ensure that there are no issues and/or highlight any potential risk areas;
  • Manage the enquiry from start to finish, working closely with you and, usually, your accountant;
  • Act as a consultant to your accountant or be involved in leading discussions and final negotiations directly with HMRC.

At Pannu Tax you will be advised by some the UKs leading tax investigations and dispute specialists who have the practical experience and the technical knowledge required to provide you with the type of effective support you need.

By engaging with Pannu Tax you will have access to their extensive experience and in depth and up to date knowledge of HMRCs procedures, powers and processes (usually only found in the large global accountancy firms) but at an affordable price.

To get further information or for a free, confidential and no obligation discussion please contact us on 0800 246 5915, complete the contact form or email us direct at info@pannutax.co.uk.

Expertise & Experience

At Pannu Tax you will be advised by some the UK's leading tax investigations and dispute specialists who have the practical experience and the technical knowledge required to provide you with the type of effective support you need.

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How can we help?

For a free, confidential and no obligation discussion call us on 0800 246 5915 or email us direct at info@pannutax.co.uk


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