HMRC Tax Investigation Service

HMRC tax investigations can be complex, time-consuming, and stressful. Receiving notification of an HMRC enquiry or investigation requires immediate expert representation to protect your interests, minimise potential tax liabilities, and ensure the investigation is conducted efficiently and fairly.

Acumon's HMRC tax investigation service provides comprehensive representation and support throughout the entire investigation process. Our team includes tax specialists who have previously worked for HMRC, providing unique insights into HMRC's investigation procedures, negotiation strategies, and settlement approaches. This experience enables us to effectively represent your interests and achieve optimal outcomes.

HMRC conducts various types of investigations, each requiring a tailored approach. Our service covers:

• Full Enquiries: Comprehensive investigations into tax returns, typically covering multiple years and various aspects of tax affairs
• Aspect Enquiries: Focused investigations into specific aspects of tax returns, such as particular deductions, income sources, or transactions
• Random Enquiries: Routine checks selected at random, requiring prompt and accurate responses to avoid escalation
• Code of Practice 9 (COP9): Investigations into suspected serious tax fraud, requiring careful handling and specialist expertise
• Contractual Disclosure Facility (CDF): Opportunities to disclose tax irregularities with reduced penalties, requiring expert negotiation
• VAT Investigations: Investigations into VAT returns, including input tax claims, output tax declarations, and partial exemption calculations
• PAYE Investigations: Investigations into PAYE compliance, including employment status, benefits in kind, and payroll compliance
• Corporation Tax Enquiries: Investigations into company tax returns, including transfer pricing, capital allowances, and group relief claims

Our comprehensive HMRC tax investigation service includes:

• Initial Assessment: Immediate review of HMRC's enquiry letter, identification of issues, and development of a strategic response plan
• Documentation Review: Comprehensive review of relevant documentation, identification of supporting evidence, and preparation of responses
• HMRC Liaison: Direct communication with HMRC on your behalf, ensuring professional representation and efficient resolution
• Information Requests: Management of HMRC information requests, ensuring appropriate responses while protecting your interests
• Meeting Representation: Attendance at HMRC meetings, providing expert representation and ensuring your position is effectively communicated
• Dispute Resolution: Negotiation of settlements, including calculation of tax, interest, and penalties, and agreement of payment terms
• Appeal Representation: Representation in appeals to the First-tier Tribunal and Upper Tribunal, where disputes cannot be resolved with HMRC
• Penalty Negotiation: Negotiation of penalty reductions based on disclosure, co-operation, and other mitigating factors

Many of our tax specialists have previously worked for HMRC, providing unique advantages in tax investigation representation:

• Understanding of HMRC Procedures: Deep knowledge of HMRC's investigation processes, internal guidelines, and decision-making frameworks
• Effective Negotiation: Understanding of how HMRC negotiates settlements, enabling development of effective negotiation strategies
• Penalty Reduction Strategies: Expertise in factors that influence penalty calculations, enabling maximisation of penalty reductions
• Communication Skills: Ability to communicate effectively with HMRC, using appropriate language and addressing issues in ways that facilitate resolution
• Risk Assessment: Understanding of how HMRC assesses risk and prioritises cases, enabling proactive management of investigation risks

Where tax irregularities are identified, voluntary disclosure can significantly reduce penalties and avoid criminal prosecution. Our service includes:

• Voluntary Disclosure Preparation: Comprehensive preparation of voluntary disclosures, including calculation of tax, interest, and penalties
• COP9 Representation: Expert representation in Code of Practice 9 cases, including negotiation of Contractual Disclosure Facility agreements
• Penalty Minimisation: Strategic disclosure approaches that maximise penalty reductions through co-operation and quality of disclosure
• Payment Planning: Negotiation of time-to-pay arrangements with HMRC, enabling manageable settlement of tax liabilities
• Criminal Prosecution Avoidance: Expert handling of cases to avoid criminal prosecution, where appropriate and possible

Prevention is better than cure. Our proactive tax risk management service helps reduce the likelihood of HMRC investigations:

• Tax Return Review: Comprehensive review of tax returns before submission, identifying potential enquiry triggers
• Risk Assessment: Assessment of tax return risk factors and implementation of strategies to reduce enquiry risk
• Documentation Systems: Development of systems to maintain appropriate documentation, supporting tax return positions
• Compliance Reviews: Regular compliance reviews to identify and address potential issues before HMRC enquiries
• Training and Education: Training on tax compliance requirements and best practices to reduce investigation risk