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HMRC inspection is not uncommon but still not the most pleasant procedure that some businesses have to go through. Naturally, it is stressful but if you know what to expect and how to get ready it will not be such a shock. This Right Accounts blog post is especially valuable for small and medium business owners as they are often targeted by HMRC for inspections.
There are three types of HMRC enquiries:
Why are you being investigated? HMRC investigation can be triggered by some inconsistency in your numbers but your company can also be picked randomly. So if you know that everything is in order, there is no need to start panicking.
The best way you can deal with such an inquiry is to be always ready and have all the documents in line. Invest time in structuring your accounting records and from time to time check if there are no gaps or inconsistencies.
We also recommend to think about tax investigation insurance. Dealing with HMRC can take months or sometimes even years, and cost quite a lot of money. In such case insurance could save your wallet. But it is important that you take out the insurance cover before the tax return is submitted.
In case you are unlucky and your company is selected for investigation, here are some important tips that you should take into consideration.
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