A tax investigation is an enquiry permitted by HMRC. They look into your financial affairs due to reasonable doubt in your tax payments. The duration of this process can usually take place between 6 months to 12 months. As a result, the time constraint depends mainly on the type of examination that is being carried out.
Full Enquiry Investigation:
The first type of investigation is a full enquiry. This is the most common type of tax inspection. During this process, HMRC will review all of your business and financial records. This is done as there is reason to believe that a significant error or risk of an error has taken place in your financial records. This process will begin with a brown postal envelope sent to your door. Common cases involve acts of tax evasion and fraud.
Aspect Enquiry Investigation:
Subsequently, an aspect enquiry is the second type of investigation. This is similar to a full enquiry but is a shortened version of it. This type of examination concentrates more on one specific aspect of your self-assessment. This differs from a full enquiry where HMRC will look into the whole return for any inconsistencies or areas of concern.
Random Check Investigation:
Finally, the third type of inspection is a random check. It is significant to note that this procedure allows HMRC to carry out checks at random on anybody’s tax return. The process of random checks are carried out spontaneously. Regardless of the state of your financial account. That’s why it is crucial to ensure your returns are consistent and up to date.
We at Carrington Blake Accountancy believe that everyone should be equipped with a good standard of tax investigation advice. Thus we encourage those who seek to find the best expertise to contact us with their enquiries. We are here to put your worries at ease!