However careful you are with your accounts, it’s always possible that your business will be the subject of an HMRC inquiry. It’s a prospect that can be a worry, and we understand entirely.

An HMRC inquiry will begin by them issuing an inquiry notice and an informal request for information.

HMRC can investigate Self-Assessment Tax Returns, Corporation Tax Returns, and VAT Returns (within certain time limits), and this can apply to the accounts for any kind of business – whether sole trade, partnership, or limited company. HMRC may also investigate issues including property rental, capital gains, incorrectly claimed tax relief, or understated income.

As an employer, you may be contacted regarding PAYE or Employer Compliance issues, such as expenses or employee benefits, and, where you used contractors, HMRC may decide to look into off-payroll working (IR35) arrangements. They may also investigate any Research and Development claims you might have made.

At Accounting People, we can take the pressure off and help you to manage the HMRC inquiry process from start to finish. Sometimes, as well as reviewing your information, they will request a meeting – and we can provide supportive and friendly professional representation to help you give the correct information, but also to ensure HMRC is following the correct processes. If there is a problem with your accounts, we will support you through the process, and handle the inquiry to advise on the best course of action and help get the best result for you.

We have extensive experience in dealing with HMRC inquiries and negotiating settlements, with considerable success in resolving issues and negotiating payment schedules where these are needed.

If you do receive an inquiry notice from HMRC and are not sure what to do next, if you have an ongoing inquiry, or have undisclosed income, get in touch with us and we’ll talk through your circumstances and advise on your next steps.