Being targeted with an HM Revenue & Customs (HMRC) tax investigation can be a very daunting experience.
You will probably be contacted by letter to inform you of their intentions and will instantly assume the worst.
However, it is important to remember that any individual or business can be targeted by the tax authority – and HMRC does not even have to provide a reason for launching an investigation.
In fact, every year HMRC will launch a number of random investigations as they seek to close the £33 billion tax gap.
First contact
If you have been selected for investigation, HMRC will write to you to inform you of the impending enquiry, usually requesting that you respond within 30 days.
Throughout the investigation process, it is important to respond to any written requests received from HMRC within good time, to ensure that hefty penalties are avoided.
Aspect vs Full
There are two main types of HMRC investigation:

• An ‘aspect enquiry’ – which may only focus on an individual aspect of your tax return and is likely to be resolved much more quickly.
• A ‘full enquiry’ – which is more detailed and may require you to provide HMRC with full and comprehensive records for the entire year of enquiry.

Depending on the type of investigation you are facing, it could take anywhere between three and 18 months to resolve.
This is why it is wise to appoint an accountant to act on your behalf with a view to resolving the matter promptly and to bring it to a timely and satisfactory conclusion.
Protection is key
To protect you against the ever-growing focus and activity at HMRC, Grunberg & Co offer our clients’ a tax investigation service.
We hold the policy directly with the insurer, reducing the administration for all parties involved so that we can offer fantastic services at significantly discounted rates.
In the unfortunate event of being selected by HMRC for investigation, there will be no additional accountancy fees to pay. Just send us the notification from HMRC and we will help to resolve the case.
As mentioned previously, any business or individual can be targeted with an enquiry at any time.
The best defence to an HMRC investigation is to engage professional representation with us from the outset, so why not contact us today to find out how we can help and protect you with our tax investigation service.