Tax investigations are on the increase.


As a direct result of the Exchequer’s intention to raise tax revenue innocent taxpayers will face an ever increasing risk of receiving an enquiry notice. Even if no tax is found payable, the worry and time consuming nature of a badly managed enquiry, can have a seriously detrimental effect on your business and private life.

It is natural for taxpayers to feel worried and threatened by the powers of HMRC. In fact, many accountants without years of tax investigation experience feel exactly the same way.

It is therefore essential, that in the event of an enquiry notice you immediately obtain specialist advice. You must be confident at all times that your interests are the priority. You must ensure that HMRC do not abuse their power but only act within the powers granted to them by the law.

By being proactive in the enquiry process our tax investigation experts will ensure that any enquiry is carried out in accordance with the strategy set by our experts and you, not those set by HMRC.

We firmly believe that this is no arena for amateurs and consequently our tax investigations team consists exclusively of Chartered Tax Advisors and former Inspector of Taxes.

Our experts will oversee the entire process, meaning that you will have the minimal contact necessary with HMRC. We will brief you before meetings, attend meetings on your behalf, liaise directly with HMRC at all stages, and ultimately negotiate and secure a fair settlement in terms of any tax payable and penalties.

 

If you have received a tax enquiry notice and are concerned about what to do, please contact us immediately.

 

Our tax investigations services

We offer a unique Tax Investigations Service, backed by our insurance with Markel Tax, whereby our clients (current and new) are able to have us handle for them the following:

Full and aspect enquiries into:

  • Corporation Tax Returns
  • Partnership Tax Returns
  • Sole Trader Tax Returns
  • Personal Tax Returns

Disputes into:

  • VAT
  • Employer compliance (PAYE, P11D and NIC)
  • IR35

Download our tax investigations service summary pdf for more details

tax investigations service simmary
Why use UHY Ross Brooke in a tax investigation?

Our client had made payments to employees in settlement of a claim for vicarious liability (infringement by a non-employee in breach of employee rights, brought against the Company). HMRC questioned whether these payments were allowable for Corporation Tax purposes or not. This was a technical argument.

How did we defend our client?

We considered and distinguished the facts of the McClaren Racing Ltd [2014] case on the basis of ‘vicarious liability’ being a no-fault mechanism and that the individual concerned was not an employee of the company. The company had made the payment to ensure its ability to continue to trade without a staff grievance overhanging it.

What was the result?

HMRC concluded the Corporation tax enquiry with the major point argued agreed by HMRC in our favour, saving the client £33,250 + potentially 30% penalties.

How did our client feel?

Our client was delighted by the result and the tax savings that we helped his company to achieve, while also being satisfied with the thoroughness of the HMRC investigation.