Tax inspections in the UK are carried out routinely every 5 years, or in cases of suspected irregularities or late tax payments. Although the UK system is business-friendly, the whole process can be stressful for you. That’s why it’s important to prepare properly. How do you do that? The best way is with professional help!
When does HMRC conduct tax inspections?
HMRC carries out inspections to check that a business is paying the required taxes, filing returns on time and complying with the rules. Therefore, these inspections are not always the result of any wrongdoing on your part.
Inspections are generally carried out every 5 years. However, you may also face an inspection if your tax return is significantly late. Inspections are sometimes triggered by having multiple bank accounts in different countries or unreported discrepancies in your tax return.
How do tax inspections in the UK proceed?
Tax inspections in the UK are mainly carried out by telephone to check that you are complying with your obligations. The officer may also inspect your accounts in person, but you will be notified in advance of the scheduled inspection date. In the UK, your company can be represented at such an inspection by an accountancy firm. This means that you don’t need to be present.
What does HMRC check during an inspection?
During an inspection, HMRC checks the following:
- Your tax payments
- Self-Assessment
- Your company’s tax returns and financial reports
- PAYE documents – if you employ staff
HMRC will notify you of the inspection results – you will either receive a tax refund or a request to pay any outstanding tax. You have 30 days to settle any unpaid amounts.
What are your obligations during a tax compliance inspection?
For the duration of the tax compliance inspection, prepare the documentation requested by HMRC. It is also important to have the documents that were used to complete the tax return. During the meeting, you and the officer will discuss tax matters and the submitted documents. HMRC gives you 30 days to gather the required documents.
You don’t have to handle the inspection on your own! We can represent you before HMRC!
Remember, you don’t have to face an HMRC inspection alone; you can appoint a representative at any time. We understand how stressful it can be to deal with the tax authorities and inspections, even if you have done nothing wrong. That’s why it’s worth saving yourself unnecessary stress. Our firm can represent you before HMRC. Better still, by entrusting your company’s accounts to professionals beforehand, you can rest assured that your taxes will be filed correctly and your accounts will be in order.
