Q&A about HMRC tax investigations answered ABV Solicitors When you run your own business or company, it can be a shock to the system when you find out that HMRC is investigating you for tax fraud, especially if it has come out of the blue. The important thing is to remain calm and contact a fraud solicitor as soon as possible to help get the ball rolling in building a defence. A fraud solicitor will have worked with this kind of case before and will be able to offer you help and guidance on what information needs to be provided, what the next steps are and, of course, whether there will be any penalties or charges based on the evidence that you give them. More than anything, though, you will likely have some questions. While it is not possible to answer the specifics of your case, in this article, 5 common queries relating to HMRC tax investigations are answered. Why am I being investigated? A tax investigation is an inquiry into your tax payment history, and it can be due to issues with the tax return, a mistake on the tax return, conflicting information, a whistleblower, a random check or incorrect information on your tax returns. But it is important to identify the type of tax inquiry that you are undertaking. Sometimes, HMRC does almost spot checks on businesses; if this is the type of investigation, you will not need the help of a fraud solicitor. How do I know if I’m being investigated? You will know you are being investigated as you will receive a letter from HMRC stating that they are looking into affairs. As soon as you receive this letter, depending on the severity, you will need to contact a fraud solicitor even if this letter states that they simply want a bit more paperwork. A fraud solicitor will know exactly what paperwork is required and can ensure that any forms that you need to fill in are completed promptly to avoid further complications. How far back can HMRC investigate? This will vary depending on the facts of each case, but in severe cases of tax fraud investigations, HMRC has been known to go 20 years back, which can be difficult, as one may not have their tax records from this time. A fraud solicitor will be able to help in this area and can also overtake this intimidating task of having to identify and locate all of the tax records required. Will I need to pay up? You will only need to pay up as it were if you haven't been paying your taxes accurately. So, if all is well and it is a simple misunderstanding, then no, you will not owe any money to HMRC. Once again, depending on your case, your fraud solicitor will be able to advise you on the likelihood of you needing to pay money. Will there be a penalty? If it is found that you have not been paying your taxes correctly, then there will usually be an additional penalty, which will vary in cost. It can be from 15% to as much as 200% of the tax that has not been paid. It will depend on the irregularity itself and the circumstances, but once again, this is an area that a fraud solicitor can advise you in. Link 1-https://www.abvsolicitors.co.uk/services/serious-fraud-and- business-crime/ Link 2-https://rsaccountancy.co.uk/uk-tax-investigations/ Link 3-How to survive an HMRC tax investigation (simplybusiness.co.uk)