Services
Enquiry Support Service
Our enquiry support service can ensure you pass all of HMRC’s compliance checks into R&D tax relief claims. HMRC have recently overhauled their R&D Tax Relief Scheme to help prevent fraudulent claims. This makes the possibility of you receiving an enquiry into your R&D claim much more likely.
What is an HMRC Enquiry
An HMRC Tax Enquiry also know as an HMRC Compliance Check is an investigation into your company’s tax affairs. During an enquiry, HMRC may request documents, conduct interviews, and scrutinize financial records to ensure compliance with tax laws.
Enquiries can be full enquiries or they can relate to just one aspect, for example VAT. Aspect enquiries are usually more straight forward, were as full enquiries are much more in depth and lookat every aspect of a company’s tax return.
Tax Enquiry letters can be intimidating and can come with a deadline. Missing that deadline can put you in a difficult position. It is important to seek professional advice, as soon as tax enquiry letter is received.
What will HMRC ask for?
HMRC will usually ask to see all the company’s financial records, this will include the company’s financial accounts, regardless of whether they were prepared by the company or by the company’s accountant. They will examine this data to ensure that all incomings and outgoings have been correctly recorded.
They may also ask to meet in person so that they can see how the company operates.
It is also common practice for the company director’s personal finances to be reviewed. HMRC have limited legal power to ask for personal records, an investigation into a company’s tax affairs does not automatically give HMRC the power to gain access to the director’s personal information. This is why it is essential to work with a trusted Tax Advisor, who will ensure your best interests and prevent HMRC from investigating beyond the scope of their powers, and opening a personal tax investigation without a substantial reason.
How can we help?
We can deal both with the individual or company who is subject to an enquiry and we can also support and advise accountancy practices on dealing with enquiries.
We understand that sometimes mistakes can be made, and have a non-judgmental attitude and will defend our clients within the scope of the law.
Our expertise in tax compliance is unrivalled, with several former HMRC Inspectors and tax specialists on our team.
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Existing Clients
We offer enquiry support as an inclusive element of claims we complete. Any assistance in the event of an enquiry would be covered by our fee protection insurance, and as such all time involved in defending the claim would be covered by the policy.
We will liaise with HMRC on your behalf, making the enquiry process as stress free as possible for you.
By providing a detailed technical report with all our claim submission we aim to answer any queries HMRC may have. This should allow the enquiry to be concluded as promptly as possible.
New Clients
We will review your claim, and any HMRC correspondence to determine the best course of action. Should further information be required our team will work with your competent professionals to ensure this is provided in a timely and easy to understand manner to HMRC.
We will liaise with HMRC throughout the enquiry on your behalf to get the best possible outcome for you.
COP8 Investigations
What is a COP8 Investigation?
A COP8 investigation means HMRC Code of Practice 8 investigation. It is a civil investigation used to tackle tax avoidance schemes. Tax avoidance and tax planning schemes can take advantage of perceived loopholes in the legislation, to save on tax, however they can be very much open to interpretation and are often high risk.
In some cases, when a tax avoidance scheme is used by many taxpayers, HMRC will chose to only investigate a selection of these taxpayers, and apply the results to all of the scheme’s participants.
Why have I received a COP8 from HMRC?
HMRC opens a COP8 investigation when they suspect that a taxpayer has paid less tax through using a tax avoidance scheme or plan. Whilst you are not being accused of tax evasion, they are investigating your tax affairs to ensure that they comply with Tax Legislation and to challenge them if they think that they don’t comply with tax legislation. There are instances however, that a COP8 can be upgraded to a COP9, if for example you are suspected of purposely providing incorrect information to HMRC or if there is other evidence of tax evasion. This makes seeking a tax specialist, who will assist you with your responses, essential.
How do HMRC Challenge Tax Avoidance Schemes?
HMRC may use one of two tactics to challenge a tax avoidance scheme. Sometimes they will use both of these tactics in conjunction with one another:
- They may disagree with the interpretation of the legislation that the Tax avoidance scheme was based on. A challenge of this type will include detailed technical arguments on the interpretation of the Tax Legislation. If you cannot convince HMRC that your interpretation is correct then a Tax Tribunal is set up to resolve disputes.
- HMRC may agree with the interpretation of the legislation but do not agree with how the scheme has been implemented, meaning that they do not agree that all the correct steps have been taken to avoid tax.
What do I do next?
Get in touch with a professional tax expert who can advise you. It is often the case that the Tax Advisor who referred you to the scheme, is not best equipped to defend an investigation, as they can lack objectivity. As independent Tax Investigation Specialists we have the expertise and knowledge to defend your claim. With our wealth of experience including our excellent track record and experience of working with HMRC, we are best placed to assist you.
COP9 Investigations
What is a COP9 Investigation?
Code of Practice 9 are HMRC Tax Enquiries to investigate suspected Tax Fraud. If you receive a COP9 notice, HMRC are letting you know that they suspect you of tax evasion and that they are opening an HRMC Fraud Investigation. HMRC will offer you the opportunity to admit or dispute any fraudulent activity, giving you 60 days to respond.
In some cases, when a tax avoidance scheme is used by many taxpayers, HMRC will chose to only investigate a selection of these taxpayers, and apply the results to all of the scheme’s participants.
What should I do next?
Getting specialist advice at an early stage is essential to minimize the risk of a criminal investigation. A COP9 will give you the option to give full disclosure of your tax affairs and admit any fraudulent activity, meaning that you accept guilt for deliberately carrying out fraudulent activities for tax avoidance purposes or you can deny any fraudulent activity, which means HMRC will begin an investigation. HMRC can investigate as far back as 20 years.
How can PGR Advisory help?
As tax specialists we can assist you with preparing and submitting your disclosure to HMRC, liaising with HMRC on your behalf to ensure your disclosure is complete and accurate. Whether you want to accept or decline the COP9 offer, it can be a very stressful time. We can take some of the weight off your shoulders by dealing with HMRC on your behalf.
We can review the evidence that HMRC has provided and help you to understand the charges against you. We can help compile a meticulous response to the enquiry, and take over communication with HMRC, to reduce your burden and make a difficult time less daunting. We will advise you on your rights and responsibilities, and set forth the best course of action to achieve the best outcome for you and your business.
HMRC Enquiry Support
Case Studies
CoP 8 notice for Wealthy UK family
Background In early 2022, our team were engaged by a wealthy UK family who had recently received a...