With a budget deficit of over £355 billion, we fully expect HMRC to raise more enquiries this year to increase tax revenue and plug the hole left in the Government’s finances by the economic damage caused by COVID-19. For those who have relied on a Covid-19 support scheme such as the CJRS (furlough scheme), it is likely that HMRC will be looking a lot more closely at tax returns, payments and compliance history’s. Tax and VAT repayments will also be checked more rigorously alongside the usual full tax investigations.
Could you be affected?
HMRC opened 102,000 investigations into taxpayers in the first quarter of 2021 – up 36% from 75,000 in the previous quarter.
Powerful new software can trace even the smallest discrepancy in spending or earnings, prompting an investigation into individuals and businesses. 83% of tax investigations are triggered by HMRC's ‘Connect’ system.
Anyone who submits a tax return is a potential target
Call in the experts
If HMRC states its intention to investigate your tax payments don’t panic.
Call us – your dedicated accountant and best defence. We will translate the many complicated questions the taxman may pose, manage the entire conversation with the taxman, help you submit any required information and minimise the impact on your business or personal life.
However, the cost of supporting you throughout an investigation is not covered in our usual accountancy fees, this is where our protection service comes in.
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