Understanding the Process and How MAAK Accountancy Can Help

In the UK, the HMRC (Her Majesty’s Revenue and Customs) is responsible for managing taxes, national insurance, and other financial matters. Whether you’re a business owner, self-employed individual, or an employee, it’s important to be aware of how HMRC handles tax enquiries. If you’re under enquiry by HMRC, understanding the process is essential to navigate the situation effectively.

What is an HMRC Enquiry?

An HMRC enquiry is an investigation by HMRC to ensure that individuals or businesses are paying the correct amount of tax, National Insurance, or other duties. The investigation can focus on tax returns, income declarations, VAT, or any discrepancies they may find in financial records.

HMRC enquiries can be divided into two types:

  1. Random Enquiries – HMRC may select your tax return for review as part of a routine check or random sample.
  2. Risk-Based Enquiries – If HMRC suspects that something is wrong with your tax filings or notices discrepancies in your accounts, they may open an enquiry to investigate further.

Why Do HMRC Conduct Enquiries?

There are several reasons HMRC may choose to conduct an enquiry:

  • Under-declared income or expenses: HMRC checks for accurate reporting of earnings and deductions.
  • Non-compliance with tax laws: This could include late payments, errors in tax returns, or failure to submit returns.
  • Random selection for checks: Occasionally, returns are chosen at random to ensure fairness and compliance across the system.

Types of HMRC Enquiries

HMRC can initiate different types of enquiries depending on the scope and nature of their concern:

  1. Full Enquiry – A complete investigation into your tax returns and accounts.
  2. Aspect Enquiry – A more targeted review, focusing on a specific area such as expenses or income.
  3. Discovery Enquiry – If HMRC believes that tax has been underpaid, they may investigate previous years.

How Maak Accountancy Can Help

Dealing with an HMRC enquiry can be stressful and time-consuming. This is where Maak Accountancy can step in to help. Our experienced team of accountants is well-versed in the intricacies of tax law and HMRC procedures. We will guide you through the process, ensuring that all documentation is in order and that you are fully compliant with HMRC’s requirements.

We can assist with:

  • Preparing for the enquiry: We’ll ensure that your records are complete and help you gather the necessary documentation.
  • Handling correspondence: We’ll communicate directly with HMRC on your behalf, reducing the burden on you.
  • Tax planning and advice: We’ll provide expert advice to ensure future compliance and minimise the likelihood of any further investigations.
  • Appeals and disputes: If HMRC issues a penalty or demand for unpaid tax, we can help with appeals or negotiation.

Key HMRC Links for Further Information

To ensure you have the correct and up-to-date information, here are some useful links from the UK government:

  1. HMRC – Starting and Running a Business
  2. HMRC – Self Assessment
  3. HMRC – VAT Guide
  4. HMRC – Tax Compliance
  5. HMRC – Tax Enquiries and Investigations

Final Thoughts

Whether you’ve received a letter from HMRC or are simply looking for advice to prevent future issues, MAAK Accountancy is here to help. Don’t face an HMRC enquiry alone; contact us for expert advice and support to ensure your tax matters are handled correctly and efficiently.

Let us take the stress out of your tax affairs, so you can focus on growing your business or enjoying your personal finances with peace of mind.