If you are a small business, your chances of being investigated by HMRC are much higher than it was a few years ago. This is because HMRC is of the view that small businesses are not employing best record keeping or paying correct tax which is resulting in billions of pound tax gap.

You will be surprised that big corporations like Cafe Nero, Vodafone some time pays zero tax. List of big corporations paying nil or little tax  Still the focus is small businesses!

In 2015 we started offering representation to the businesses and individuals under investigation and since then we have dealt with a number of enquiries. In 2017, we dealt with 4 full investigations and provided an effective and informed representation to our clients.  If you or your business is under investigation, call us on 01417750070 or [email protected]  

Recent cases

In 3 of these investigations, we found that halfway through the caseworkers were changed which resulted in enquiry going longer than expected. Sure it does not help, moreover, the approach and requests of these caseworkers were also unusual such as asking for financial record prior to 8 years etc.

We expected that these caseworkers would be knowledgeable but we were surprised that their knowledge of basic tax rules was too little. Not sure if the reasons are inexperienced recruitment or lack of training!

Very recently in one of the enquiry, the caseworker found that the amount coming in the bank was more than the total turnover, therefore, an assessment of £14,000 was raised. The excess amount was a loan receipt and the caseworker did not even consider this possibility, moreover, we were not even offered a chance to clarify the situation.

The caseworkers are obliged to obtain all the facts before deciding that the taxpayers have paid less tax or deciding penalty. If things were done by books then HMRC should have contacted us or the client and requested an explanation.

Standing by our clients

On the receipt of the letter, we contacted the caseworker and found her completely lost. We made it clear that it is highly irregular and if they do not reverse the assessment then we will make a formal complaint of unfair treatment.

The result was that the caseworker agreed to take the assessment back.

It is extremely important that your business is being represented by experienced, informed and most importantly by a dedicated team. In this case, we felt that our client was being unfairly treated and we stood by our client and ensured that HMRC takes corrective measures.

If you or your business is under investigation, call us on 01417750070 or [email protected]