What are the chances of getting a tax investigation from HMRC?
Author: Russell SmithJune 1, 2015
As part of our service to clients we always include a ‘tax investigation’ service which effectively means that if a client is investigated by HMRC we will do all the work needed for free no matter how long it takes.
I’m often asked what is the likelihood of being investigated by HMRC? In order to answer this, I once read a very long tax manual that went through all the criteria of how HMRC chooses who to investigate (I did this whilst you were out having a life). My conclusion was that it appeared very random.
If you are in business for the next 30 years, the certainty I can give is that it is bound to happen at least once, if not many times.
Keeping good records is essential for organization purposes and especially if the taxman comes knocking. You also have to keep all records for 7 years.