Hundreds of businesses and individuals across the Midlands will be finalising their tax returns this month as the online self-assessment tax return deadline approaches on 31 January 2019.
However, multi-award-winning accountancy firm Salhan Accountants is warning that despite their best efforts to provide accurate information many taxpayers are likely to receive notification of a tax investigation in the months to come.
The prospect of a tax investigation by HM Revenue & Customs (HMRC) can be a very daunting prospect, acknowledges the firm’s experienced tax team, but businesses and individuals should not panic.
Dr Anjulika Salhan, a Director at the firm, which has offices in Birmingham, Droitwich and London, said: “Whether you are subject to an ‘aspect enquiry’ or a ‘full enquiry’, receiving a letter from HMRC regarding a potential investigation can be stressful.
“However, what many do not realise is that the tax authority regularly conducts many of its investigations at random without having to provide a reason for their enquiries.”
Dr Salhan explained that those who do receive a HMRC enquiry should act quickly and calmly as they will only have between 30 and 35 days to respond to HMRC’s initial letter with the appropriate information.
“When under investigation, if you do not respond to HMRC’s correspondence within the timescales provided, you will receive a Schedule 36 FA 2008 information notice,” she said.
“These documents will effectively order you to produce documents and information and, if you do not comply with HMRC’s demands, you could face a penalty.”
Dr Salhan added that taxpayers should be aware that an intensive ‘full enquiry’ could last up to 18 months or longer and were often very costly.
“Taxpayers can usually resolve the matter fairly quickly if an accountant is able to intervene at the earliest possible opportunity,” she said.
