HMRC unannounced visits are becoming the norm.

Unannounced visits by HMRC carrying out inspections are becoming the norm. In this article we look at a recent client case when a taxpayer was not given the opportunity to be represented and what options are available had they known about them.

Unannounced visits by HM Revenue & Customs (HMRC) to carry out inspections are becoming extremely common. In a recent case handled by Buzzacott’s Tax Investigations & Dispute Resolutions team, the client experienced a visit at his restaurant from five HMRC officers at 11pm on a Saturday night. At the time of arrival, the client wasn’t present meaning the officers started the investigation in his absence while customers were still on site.

Unannounced visits by HMRC have to be sanctioned either by ‘an authorised officer’ or the tax tribunal and have to be 'reasonably required' for the purposes of HMRC's (compliance) check. They also tend to be carried out by HMRC joint disciplines with direct and indirect officers working together.

Unannounced visits are typically made where HMRC have had either no co-operation with announced visit requests or when they believe records may be destroyed should notice of a visit be given (as suspicion is held that the correct amount of tax is not being declared).

The visits should be made 'at any reasonable time'. However, late visits to restaurants or other similar establishments are customary, made with the purpose of HMRC being present at the end of the business day during 'cashing up'. Such late visits, outside normal office working hours, do not give the individual being investigated the opportunity to confirm the identity of the HMRC officers.

Should you receive a visit, you are entitled to representation. Given that any evidence gathered on these visits can be used in later proceedings against a taxpayer (including criminal proceedings), it is imperative that you seek specialist representation.

The powers allowing HMRC to conduct unannounced visits do not give them the right of entry and a business owner does not have to comply with the inspection notice. In our experience, the vast majority of unannounced visits sanctioned by HMRC 'authorised officers' are suggested to be refused, particularly without the presence of a specialist advisor and especially at late hours. HMRC are using unauthorised visits to target particular trades, seemingly without any thought of the intimidating nature of this approach and the impact this could have to staff and customers witnessing the visit.

How we can help 

If you are the subject of an HMRC unannounced visit do not hesitate to contact us. Our team provide a discreet and comprehensive service that is tailored to meet your unique needs and protect your interests. 

For more information or advice please visit our team page or contact: 

Mark Taylor
Head of Tax Investigations
E : taylorm@buzzacott.co.uk
T : +44 (0)20 7556 1243

You might also be interested in… Tax investigations and resolving disputes.

Guidance from start to resolution

Our service is designed to tailor a strategy to suit your unique needs for reaching resolution with HMRC as quickly and cost-effectively as possible. Our team of tax experts include ex-HMRC Senior Investigators and Inspectors who understand HMRC’s mind-set and can handle any investigation or disclosure for you directly and support you at every stage of the process. 

If your case involves other advisors – such as solicitors or accountants – it’s no problem to mesh our services with theirs. We regularly join forces with other firms to support our clients. We are about easing the process and reaching the best outcome, whilst always complying with tax regulations and legislation.

Our clients have told us that we deliver on our promises, provide honest, open and regular communication that is easy to understand and take an active interest in their case.

Whatever business or industry you’re in, whatever the tax issue may be, you’ll get clear relevant guidance at a fair price agreed upfront. We value our clients and we pride ourselves for always being honest and upfront at all times. 

Specialists in tax investigation and resolving disputes

Download these useful resources:
Buzzacott Tax Investigations and Dispute Resolution brochure

What do our clients say?
Find out what our clients have to say when using Buzzacott's Tax Investigations and Dispute Resolution team