Income Tax Enquiries
An Income Tax Enquiry can be very worrying, distracting, and costly; not only in tax, interest and penalties; but also in lost time. It can put a toll on personal health, and relationships.
Income Tax Enquiries are usually carried out by tax officers and tax inspectors in HM Revenue & Custom’s Local Compliance offices. A tax inspection usually starts within a year of you sending in your Self Assessment Tax Return; but can commence years later. HMRC will normally send you a legal Notice of Enquiry (or Notice of Intention to Enquire) and Code of Practice 11 (Enquiries into Tax Returns by Local Tax Offices).
Sometimes HMRC send a more general letter offering you the chance to make a disclosure. These invitation to disclose types of letters are common where HMRC already holds information - such as: details of rents received through a letting agent or by housing benefit; or offshore bank accounts held. These types of tax enquiry need careful handling so as to: minimise the risk of prosecution; obtain the maximum tax relief for costs incurred; and to minimise the penalties that the taxman will charge.
Only about 3% of traders get investigated each year and only 3% of those are ’Random Enquiries’. The rest are selected by the Tax Inspector because he suspects there is something wrong with your business accounts or personal Tax Return; and he believes he will get more Income Tax, interest and penalties out of you. Often the tax inspector suspects you of fiddling your books. If you get a Tax Enquiry Notice or a COP 11 then you or your accountant may need specialist help.
Most Income Tax enquiries are intrusive and cover your personal affairs as well as the business.
A very few Income Tax Enquiries are started with HMRC Code of Practice 9 ("Contractual Disclosure Facility") by the elite Fraud Investigation Service. If you receive COP 9 then HMRC believes you are guilty of tax evasion - and you should get specialist help urgently.
Lynam Tax Enquiry Experts can help you. We understand the stress of an Income Tax Investigation and have over 80 years’ experience of dealing with tax enquiries into owner-managed businesses; buy to let landlords; and offshore investors. We have the expertise, knowledge, skills, and years of full-time experience to assist you in these difficult times: and to get the best result for you, your business and your family.
For more information and a free, private, no obligation discussion phone Paul Lynam today on 0845 643 9997.
Lynam Tax Enquiry Experts HELP ME?
- Offshore Bank Disclosures
- Contractual Disclosure Facility/ COP9
- Appeals / Tribunal Hearings
- Tax Amnesty
- Fraud Investigation Service
- Rental Income Tax Enquiry
- Business Tax Enquiry
We specialise in managing all Tax Enquiry, Tax Disclosures & Tax Disputes with HMRC.
We will help you throughout the Tax Investigation or Disclosure and save you money, so you can concentrate on running your business and enjoying your private life.
For a helpful, sympathetic, confidential and no obligation discussion: