HMRC’s approach to tackling non-compliance with the UK’s tax rules is that everyone should pay the right amount of tax at the right time. But the UK tax system is notoriously complex. This means mistakes happen, and disagreements between HMRC and taxpayers can occur.

What is an HMRC investigation?

An HMRC tax investigation is a check into your personal or business tax affairs to establish if you’ve reported and paid the correct amount of tax. The frequency of these checks has increased in recent years with more government funding, additional legislative powers and advancements in the technology available to HMRC.

The nature of an HMRC tax investigation depends on the amount of tax at stake and the behaviour that resulted in the potential tax loss. HMRC has a wide range of powers to carry out their enquiries:

Formal information and documentation requests
Visiting business premises
Issuing assessments for additional tax, interest and penalties

How can I resolve a tax dispute?

Tax disputes can be resolved by directly contacting and engaging with HMRC to work through the disagreement. This can involve further discussions with HMRC to ascertain all relevant facts and ensure the correct technical treatment is applied.

If you become aware that you may not have paid the correct tax, the best approach is to make a voluntary disclosure to HMRC before HMRC comes to you. This could reduce the penalty you have to pay.

You can deal with HMRC yourself, but it can be overwhelming and time-consuming to work out the best approach to contact or respond to HMRC. Our team has years of experience dealing with contentious tax disputes and disclosures for businesses and individuals. Our skilled tax investigation specialists can help you navigate the complex rules and protect your interests.