Tax audits are routinely carried out by HM Revenue and Customs if you are registered for VAT or have employees paid by PAYE. In this situation tax audits can be expected every 5 years or so, however if the HMRC suspects that tax is being underpaid, there are irregularities or inaccuracies in your tax return, this could trigger a tax investigation.
A tax investigation can last several months and usually begins within twelve months of the due date of the tax return it relates to or if you missed the due date, twelve months after the actual date you filed the return. There are occasions where an investigation broadens to include for example a corporation tax investigation, which will include enquiries into a director’s personal tax affairs.
Whether it’s a tax audit or investigation it can be a stressful time. We can help you by checking through your records and systems and manage all documentation and correspondence required by HMRC to ensure the investigation is quickly resolved and there are no unreasonable delays.