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FAQs about tax investigations answered by our fraud solicitor
01 Jun 2022

When you run your own business and are responsible for your tax returns, you want to stay on the good side of Her Majesty’s Revenue and Customs.

So it can come as a bit of a shock when you receive a letter stating that you are being investigated for tax fraud.

But this is where our team comes in.

At ABV Solicitors, our fraud solicitor can help. We have the knowledge and experience to oversee and assist in any HMRC tax investigation and will aim to work with HMRC to reduce any fines if needed. We can also provide customised tips for your company to ensure that this does not occur again.

But you will probably have some questions. In this article, our fraud solicitor aims to answer some of the most common questions that we receive about HMRC tax investigations.

Why is my business being investigated for fraud?

There may be many reasons why you are being investigated for fraud.

Perhaps your recent tax return raised a few red flags. Or perhaps there has been a tip-off as to unlawful practices within your company. Alternatively, this could all be completely innocent, which we will explain in the next part of this article. But irrespective of the reasons as to why you are being investigated for tax fraud, you will need the help of our fraud solicitor.

Are there different investigation types?

Yes, under HMRC there are three different tax investigation types, which we will

briefly outline here.

Full enquiry

A full enquiry is when HMRC wants to explore all aspects of your business and its finances, including tax returns, invoices, VAT receipts, etc. A full enquiry can mean that you will need to get access to your tax records for the past 20 years. But if this is not an option for you, our team can step in and offer legal advice.

Aspect enquiry

An aspect enquiry occurs when HMRC only wishes to explore one part of your business’s finances, which could be invoices or tax returns from the last five years.

Random enquiry

Like most governmental authorities, HMRC has quotas to fill. A random enquiry into your business documentation is just that; they are filling a quota, and it is simply a tick box exercise.

I have an accountant for my taxes; what shall I do?

If you have an accountant for your business taxes and you are under investigation by HMRC, then you and your accountant will both need to cooperate with the terms of the investigation.

What if I don’t have the required documentation?

As mentioned earlier, for a full enquiry you may not have the range of documentation needed, but this is where our team can help. We will aim to provide you with legal advice for this potential issue and work with HMRC to find a satisfactory resolution.

How can I prevent future investigations?

To prevent future full enquiries or aspect enquiries, it is best to ensure that your tax returns are correct and that you follow the guidelines for tax returns as laid down on HMRC’s website. If you are not sure how you can prevent future potential investigations, talk to our team for advice.

How to deal with a fraud allegation

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