How likely is it that I will get a tax investigation?
Author: Russell SmithSeptember 4, 2015
When people start businesses they are keen to get everything right re their finances and paperwork.
One of the reasons is that they are worried that HMRC will have a look at what they are doing and cause trouble or fine them.
Some people I speak have the belief that HMRC reviews all the paperwork, bank statements and receipts every year.
So here’s the thing you need to know about HMRC……they have been tasked with attacking tax evasion (illegal) and tax avoidance (legal) whilst at the same time they have had their staff numbers drastically cut.
So HMRC cannot look at your paperwork every year, they don’t have the resources and in most cases there is no reason to.
However, you do need to keep everything in order because at some point it is possible that you do get a tax investigation. It is so difficult to know how often but I would estimate that you should expect 1 in your first 1o years.
All tax investigation work is included in our basic services so you shouldn’t worry about extra accountancy fees.