Tax Investigation advice by the experts
Tax Investigation Services
At Churchill Tax we provide specialist Tax Investigations advice.
We appreciate that every tax investigation is different and we tailor our approach based on the individual circumstances surrounding each investigation in order to provide the best possible service for our clients.
We deal with all types of enquiries, no matter how large or small. In particular, we have gained extensive experience in the following areas:
Tax Fraud & Tax Evasion
Serious tax fraud investigation (Code of Practice 9 – CDF)
Tax avoidance investigation (Code of Practice 8)
Voluntary Tax Disclosure
HMRC Compliance Check
Personal Tax Investigation
Company Tax Investigation
Specialist Investigations & Local Compliance
Criminal Tax Investigation
Residence & Domicile Enquiry
First & Second TierTax Tribunal
Personal Service Companies / IR35
Tax litigation advice
Working with Accountants, Lawyers & other professional intermediaries
Churchill Tax – Services
Different Types Of Investigation
HMRC carry out a range of different types of tax investigations. All of these investigations are officially called “enquiries” but they range from simple requests for clarification to criminal prosecutions.
The investigation can look at the tax affairs of different types of taxpayers – for example companies, individuals, businesses or trusts.
The whole range of taxes can be reviewed – for example income tax, capital gains tax, inheritance tax, corporation tax or VAT.
HMRC can also look into a business’s role as an employer by examining how it operates PAYE on the pay and benefits it gives to its employees (including a company’s directors).
Different Levels Of Investigation
Some tax investigations, whether personal tax investigations or company tax investigations can be minor and straightforward; these can often be settled by the exchange of letters between HMRC and the taxpayer’s advisor or agent.
Most cases involve much more. HMRC will want to examine business and personal records in order to check that all profits and gains have been taxed correctly. Usually HMRC will want to interview the taxpayer, or visit the business premises. Not only can this kind of investigation take a long time to resolve, but it can also seem very intrusive.
Where HMRC suspect “serious” tax avoidance, these cases are dealt with under a special procedure set out in Code of Practice 8.
Where HMRC suspect “serious” tax fraud or tax evasion these cases are either dealt with under a special procedure set out in Code of Practice 9, though in the most serious cases HMRC will conduct the investigation with a view to seeking a criminal prosecution for the offenders.
Cases which start off at one level can easily be taken up to a higher level if further information comes to the attention of HMRC during the course of the investigation or if the investigation has been mishandled by the taxpayers advisor. This is why it is recommended that taxpayers seek specialist tax investigations advice.
Cases Using Civil Procedures
The vast majority of HMRC tax investigations are carried out using civil procedures. This means that HMRC will be trying to reach a financial settlement which will typically include the underpaid tax (plus, if appropriate, National Insurance), interest on the underpaid tax and a financial penalty.
Cases Using Criminal Procedures
These cases are comparatively rare, but where HMRC does choose to prosecute a taxpayer through the criminal courts, they will be looking to recover the tax and interest as in a civil case but instead of looking for a financial penalty they will be seeking a prison sentence.
How Can Churchill Tax Help?
Legislation imposes restrictions on what HMRC is allowed to do, and Churchill Tax will make sure that the Tax Inspector carrying out the enquiry does not exceed the powers they are given by law.
We will consider the level of seriousness of the tax investigation being carried out by HMRC by looking at who is leading the investigation and the nature of the questions they are asking.
We will give you the best advice on how to deal with HMRC so that you achieve a settlement as quickly as possible. We will ensure that the investigation is handled professionally, so it is not escalated to a higher level and you will avoid being named and shamed. If you need to pay more tax we will tell you so, and we will present your case in the best light possible to minimise your liabilities. If you are unable to pay the tax in one lump sum we will negotiate a time to pay arrangement with HMRC on your behalf.
As far as possible we will take the pressure off you during the investigation by negotiating with HMRC on your behalf. We will keep you informed throughout, and the final decision as to whether or not to accept the negotiated proposals will always be yours.
If HMRC have opened an enquiry into your tax affairs, or the tax affairs of your business, then please contact us on 0333 577 0829 for a free, confidential and no obligation discussion. We are happy to have an initial free of charge meeting with prospective client