After a Tax Investigation

Our Answers to Your FAQ’s - After a Tax Investigation Jump to the first phase

If you have any questions or would benefit from impartial, confidential advice, please get in touch with our experienced tax investigation team today.

Investigation is over. Relax

There is no evidence that one investigation leads to another.

If ,however, you are found culpable in an investigation and are then found to continue to make the same errors, then HMRC would take a very dim view of it. Further, you might be cought up in a different type of tax as there are various types of taxes in operation.

You’ll be:

repaid if you’ve paid too much tax - you may also get interest on the amount you’re owed

asked to pay additional tax within 30 days if you owe more - you’ll normally have to pay interest from the date the tax was due.

You can appeal against some decisions.

HM Revenue and Customs (HMRC) will send you a decision letter that will tell you if you can appeal against a tax decision.

You can appeal against some decisions about:

Your tax bill (for example Income Tax, Corporation Tax, VAT)

To claim for tax relief

A request for information or to check your business records

A penalty (for example if you paid your tax late or filed your tax return late)

If HMRC did not act on the additional information

You may be able to ask HMRC to cancel tax you owe. You can only do this if HMRC did not act on information that you, your employer or the Department for Work and Pensions (DWP) gave them.

You can ask HMRC if you owe:

Income Tax, for example because you were on the wrong tax code

Capital Gains Tax

Class 4 National Insurance contributions

Future Tax Investigations!

You can protect yourself from the cost of an investigation by taking out an insurance. At MGT Chartered Accountants, we offer such insurance to clients where we file their Tax Returns.This insurance is not however available in Code 8 and Code 9 enquiries and is also not available in cases where there has been deliberate omissions.

Further, if you do not wish to take an insurance cover, it's ok as long as you are confident that there will not be a tax investigation during your life time.