Your guide to commonly asked HMRC tax investigation questions Centra l Cour t 25 Southampton Bu i ld ings London WC2A 1AL 0344 587 9996 ABV Solicitors Are you current ly be ing invest igated for tax f raud by the HMRC? Do you run your own bus iness and f i le your own tax returns as a resul t? I f you have answered yes to these quest ions we recommend reading on to hear the answers to some of the most commonly asked quest ions regarding tax f raud. The most cruc ia l s tep to remember i s to remain calm and to assess the s i tuat ion . Once th is has been done i t i s h ighly adv ised that you enl i s t legal representat ion f rom a f raud so l ic i tor as soon as poss ib le . They wi l l be able to of fer ins ight into the s i tuat ion at hand, what you wi l l need to do moving forward and how to bui ld the best defence for your case . A f raud so l ic i tor i s fami l iar with tax invest igat ions and wi l l be able to of fer you helpfu l adv ice on what you can do to prepare for your case and what informat ion wi l l need to be presented . You wi l l a lso be able to access in format ion on whether there wi l l be any penalt ies on your behal f or i f there are charges be ing la id against you as a resul t of the invest igat ion . I t i s common to have some quest ions regarding your case and a lawyer i s able to of fer va luable ins ight and prov ide you with the answers you need so that you can be prepared . When i t comes to tax f raud a l legat ions i t could be a resul t o f a var iety o f reasons and most o f which are fa i r ly common and tend to take p lace of ten . This could inc lude the a l legat ions ar i s ing as a resul t o f an i ssue with your tax return form not being f i l led out correct ly , a v i s ib le er ror on your form, conf l ict ing informat ion being presented or even an anonymous whist le -b lower who has alerted the author i t ies on your behal f . In some instances , HMRC have in the past conducted spot checks on bus inesses and for th is k ind of invest igat ion i t wi l l not warrant you enl i s t ing legal representat ion f rom a f raud sol ic i tor . What is the most common reason people are investigated for tax fraud? I f you have f i led a tax return and as a resul t HMRC has decided to invest igate you for tax f raud , you wi l l be in formed di rect ly with the i ssuance of a letter f rom the HMRC. They wi l l personal ly let you know that they are looking into your a f fa i rs and in this instance i t i s recommended that you enl i s t legal counsel f rom a f raud so l ic i tor . In some cases , the let ter may just s tate that they are request ing further in format ion f rom you , and i t may requi re that you send through addit ional paperwork to complete the invest igat ion . I f th is i s the case i t i s s t i l l adv ised that you seek representat ion f rom a f raud so l ic i tor so that they can ass is t you with del iver ing the correct in format ion and forms to avoid any compl icat ions later on . How does HMRC alert you to the fact that you are being investigated? This i s a l l dependent on a few factors as each case is d i f ferent . There have been occas ions where HMRC have decided to invest igate over 20 years o f tax return f i l l ings to ensure that no tax f raud had taken place . A f raud so l ic i tor would be able to ass is t with ident i fy ing your tax records and ensur ing a l l your forms are up to date and accurate . Is there a time limit on how far back HMRC can investigate your returns? https :www.abvsol ic i tors .co .uk/serv ices/ser ious- f raud- and-business-cr ime/ https : rsaccountancy .co .uk/uk-tax- invest igat ions/ https : / /www.s implybusiness .co .uk/knowledge/art ic les/ 2020/09/hmrc-tax- invest igat ion/ Sources :