Frequently Asked Questions

Why would I be investigated?
HMRC are targeted with closing the tax gap between what they do collect and what they should collect. This amounts to many billions of pounds. Tax investigations are a key tool in reducing this deficit. Whether you are an individual taxpayer or business owner, an enquiry is possible. Any HMRC return can be selected for an investigation.

If HMRC open an investigation into your tax return it could be triggered for several reasons; a tip off, paying the incorrect amount of tax, late returns or simply working within a targeted sector to name a few.

Would HMRC look into a correct return?
There is a common misconception that in order to be selected for a tax investigation that you have done something wrong. This is rarely the case. Random enquiries into affairs can and do happen for a number of reasons including late submissions, working within a targeted sector or a tip off from the general public. HMRC also use sophisticated software to cross match a wide range of data sources.
What happens during an investigation?
If HMRC decide to investigate you must comply with their requests.

HMRC will check your accounts, request a plethora of documentation, ask lots of questions and may even want to visit you in person. No additional tax may be due, but you will still be left with enquiry fees which could cost thousands.

Investigations are costly, stressful, and an unwelcome distraction from day-to-day life; whether HMRC initiate a Full Enquiry of your tax history or an Aspect Enquiry into a specific area of your return, you will be liable for the professional costs to bring about a prompt resolution.

Are claims relating to pandemic measures considered?
The Croner-i Taxwise Protect furlough support package is included in the cost. The service includes comprehensive cover for all SEISS, CJRS and late filing returns amendments that HMRC have implemented during the pandemic.
Who will defend me for the enquiry?
If HMRC do initiate an enquiry, by becoming a member of our Tax Investigation Service you will be protected from accountancy fees associated with an HMRC enquiry thus limiting the stress and uncertainty.

As a member of the service in partnership with Croner-i Taxwise Protect, you can be safe in the knowledge that we will represent you in the event of an investigation and deal with HMRC on your behalf.

How much does an investigation cost?
The costs of representing you can easily run into thousands of pounds, even if little or no extra tax is paid at the end of the enquiry. These costs are not protected by the normal annual fees paid to us.
Does the service cover tax/interest/penalties incurred as a result of the investigation?
Please note that tax due, interest and penalties incurred as a result of an enquiry are not covered and you will be liable for such costs directly.
I already have some protection through a trade subscription or policy. e.g. FSB. Is this the same?
Cover from these alternative sources will normally be limited and not as wide ranging as our tax investigation service. Other policies may not pay our fees to defend you.
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