Compliance check investigations are varied and can either be an enquiry into an aspect of your tax return or a full-blown investigation of your businesses and financial affairs. At times, they can be intrusive and feel personal.
HMRC starts more than 90% of compliance check investigations because it holds intelligence suggesting something is wrong. They are rarely selected at random.
HMRC uses its powerful Schedule 36 powers to assist its compliance check investigation by requesting documents/information and inspecting your business premises, sometimes unannounced.
When considering appointing specialist representation, clients and advisers should ask themselves these questions:
- Do you feel comfortable dealing with HMRC?
- Are you able to manage and control HMRC?
- Do you have up-to-date knowledge of HMRC's latest powers?
- Is HMRC's approach or any Schedule 36 request for documents/information and the inspection of your business premises reasonable?
- Is what seemed a straightforward enquiry, now escalating out of control?
- Are there any errors in your tax affairs that you should disclose?
- Are you concerned about being publicised as a serious tax defaulter?