Protecting you from an
HMRC enquiry
£876bn Total Tax Revenues
333,000 HMRC Compliance Checks in 2023/24
£3,800​ The Average Cost of an Enquiry
What is a Tax Investigation?
â–ª Many tax investigations occur randomly. However, unusual fluctuations, undisclosed accounts, and irregular spending can also
trigger an enquiry into individuals and companies.
​
â–ª HMRC has the authority to inspect business documents and assets at your premises, request additional documents
and information, conduct unannounced inspections, and investigate matters going back up to six years.
​​
â–ª These investigations can be disruptive, intrusive, and costly. When HMRC investigates, the process can extend for a year or
more, leading to mounting expenses and increased stress levels.
Our Expertise
Our Tax Investigation Service means that should you, or your business, suffer an HMRC investigation we can:​
​​​
​​
â–ª Provide you with full professional representation from tax and
accountancy staff who already know you and understand your tax affairs
​​
â–ª Handle HMRC on your behalf by dealing with all correspondence and attending all meetings
​​
â–ª Negotiate the best possible result for you
​​
▪ ​We believe that our Tax Investigation Service provides a lifeline to our clients by providing low cost, but valuable peace of mind, at a time when it is most needed.
Case Studies
Misunderstood transactions
HMRC launched a full enquiry into a small business owner’s self-assessment return after flagging irregularities in their bank transactions. The client had moved funds between personal and business accounts, which HMRC misinterpreted as undeclared income.
Despite the accountant’s clear explanations and supporting documentation, the enquiry continued for 18 months, resulting in over £9,000 in professional fees.
Ultimately, no additional tax was found to be due, and the client faced no penalties. However, the fees for the accountant’s time were fully covered under the Tax Investigation Service, giving the client peace of mind and financial protection.
Cross tax investigation
A well-established consultancy firm was selected for a multi-tax investigation covering corporation tax, VAT, and director loan accounts over a three-year period.
HMRC initially flagged a minor inconsistency, but the scope of the enquiry quickly expanded into multiple areas with no clear direction. The firm’s accountant was repeatedly asked to supply duplicate information, re-explain accounting treatments, and justify entirely standard transactions.
HMRC’s approach became increasingly aggressive, with repeated delays and follow-up questions that added little value. Despite the enquiry concluding with minimal changes to the returns, it took over 24 months to resolve.
Professional fees for dealing with the enquiry totalled over £17,000, all of which were covered under the Tax Investigation Service, saving the client from significant unplanned costs.
Did you know?
In 2024/25, HMRC recovered £48 billion through tax compliance activity and investigations. Up from £41.8 billion the previous year it is a clear sign of its continued focus on increasing revenue from investigations.
​
The stress and cost of an investigation can be considerable and our expertise can save you time and money in the long run. There has never been a better time to subscribe to our Tax Investigation Service. Subscribing clients will also have free access to a specialist Unannounced HMRC Visits Helpline.
​
HMRC can visit at any time and we believe it is vitally important you can get the advice you need, when you need it. Subscribe to our Tax Investigation Service today to protect yourself from the costs involved in a tax investigation.
It could happen to you.
Every year, HMRC carries out enquiries into the tax affairs of an increasing number of individuals and businesses in the UK. Many people find an HMRC enquiry disruptive, intrusive, stressful and ultimately expensive.​​
​
There does not need to be a reason for HMRC to check your tax affairs. If you submit a tax return you can be selected at random, even if you have done nothing wrong. ​
​
There has been a surge in compliance cases opened by HMRC as it ramps up tax investigations work. 333,000 checks had been opened in the year to 31 June 2024 – up from 316,000 in the previous 12 months. A tax investigation can cost you thousands of pounds in accountancy fees and can often drag on for years. The average cost of an investigation is £3,800 in accountancy fees.
Nothing to Hide?
Many tax enquiries are conducted at random. Unfortunately even innocent taxpayers get caught up in the process and are under threat of investigation. Whether or not there is an issue with your tax affairs, an investigation is a time consuming process that can rack up substantial accountancy fees.
We have taken out an insurance policy in our own name that is backed by Bspoke Fee Protection, one of the UK’s leading providers. Our policy enables us to provide you with expert advice and peace of mind knowing we will work on your case to resolve the situation up to our service limits.