Protect Yourself and Your Business with our Tax Investigation Service
What is a Tax Investigation?
A tax investigation is when HMRC reviews your financial affairs to ensure the correct amount of tax has been paid. While some investigations are triggered at random, others arise from red flags like unusual financial activity, undeclared income, or erratic spending patterns—whether personal or business-related.
HMRC has wide-ranging powers. They can request documents, inspect assets, visit your premises without notice, and review your tax history going back up to six years.
These enquiries can be highly disruptive, often dragging on for months, or in some cases, even over a year, leading to significant costs and considerable stress.
Last year alone, HMRC launched 394,000 tax enquiries. This shows how many UK taxpayers fall under suspicion for underpaid tax.
Tax Investigations Are on the Rise – Could you be Affected?
In 2024 alone, HMRC investigations increased by 28%, recovering an additional £10 billion in unpaid tax. As additional measures were outlined in the Chancellor’s Spring Statement, it signals that this is a key part of the government’s on-going agenda.
Anyone who files a tax return is potentially at risk. HMRC’s advanced ‘Connect’ software continuously scans financial data to identify even the smallest discrepancies. In fact, 83% of tax investigations are now triggered by this powerful system.
Don’t Face It Alone — Our Protection Service
It is vital to be led by specialist advice and guidance when dealing with HMRC. As your dedicated accountants, we are here to help you manage any tax enquiries you might receive—from interpreting HMRC’s complex questions to managing all correspondence and helping you submit the required documents. Our goal is to reduce disruption and protect both your finances and peace of mind.
When you subscribe to our Tax Investigation Fee Protection Service, our fees will be covered if HMRC opens an investigation into your affairs. For details about the scope of protection, including indemnity limits, and to subscribe to this service, please see our Service Summary.
By choosing our service, you will continue to work with someone you know and trust and someone who understands your business, rather than being referred to an unfamiliar accountant who may be appointed if you subscribe to an alternative scheme.
Cover for all…
For limited companies and partnerships, our Tax Investigation Fee Protection Service includes comprehensive cover for all relevant individuals. When your business subscribes, representation is also provided for directors, partners, their spouses, and company secretaries, provided we act for those individuals personally, in the event of an investigation into their personal tax matters.
Please note, the cost of supporting you throughout an investigation is not covered in our usual accountancy fees.
Tax Services
It is important to ensure that your business is as tax efficient as possible, as well as being tax compliant, and our Surrey-based tax advisers can work with you to ensure that this is the case.
The UK’s tax system is becoming increasing complex. With an increased focus by HMRC on compliance and with penalties of up to 200% of the tax due, ensuring that you are compliant has never been more important.
With our expertise in tax planning, we aim to provide
comprehensive solutions tailored to your individual needs, helping you navigate
the complexities of tax with confidence and peace of mind.
Dixcart UK is part of the Dixcart Group, with 9 offices in 8 different jurisdictions, and our Surrey-based tax advisers are therefore very experienced in providing international tax advice to both companies and individuals.
Tax Advice Team
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