If you are the subject of an HMRC Enquiry, you’ll need a tax specialist like Ritchie Phillips to help you.

Once you have submitted your tax return, it is then the turn of HMRC to decide whether to open an enquiry into your tax return.

HMRC enquiries will either be a Full Enquiry or an Aspect Enquiry. Full enquiries are an extensive examination of the significant risks in a tax return including the possibility of the return being fundamentally incorrect. They will usually involve a comprehensive review by HMRC of all books and records underlying the entries in the tax return. In contrast, aspect enquiries concentrate on one or more entries on the tax return. This may involve the classification of particular entries to a detailed consideration of whether those entries have been treated correctly for tax purposes.

There are strict time limits for the opening of an enquiry by HMRC. This is normally twelve months from the date the tax return is submitted to HMRC. However discovery assessments can be made beyond this time limit in the event of incomplete disclosure in your tax return.

In cases of serious loss of tax due to a taxpayer or a group of taxpayers deliberately seeking to pay less tax through a tax scheme or the unintended use of tax legislation, then the enquiry may be conducted under Code of Practice 8 by the section of HMRC known as Specialist Investigations.

Your strategy in responding to any enquiry is vital. It will in part depend on the nature of the enquiry by HMRC. It will also in part depend on your situation and circumstances. One thing is certain…if you are the subject of an HMRC Enquiry, you’ll need a tax specialist like Ritchie Phillips to help you. Our experience will enable your response to be appropriate and in your best interests.

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