There are a number of reasons that HMRC may contact you about your tax matters.
An HMRC enquiry is opened when you have filed a tax return. Generally, if you filed your tax return on time and made no changes to it, HMRC have 12 months from the date you filed the return in which to open an enquiry. It is advisable to check whether HMRC has raised the enquiry within the time limits and question this if necessary.
A check can only take place before a return is lodged. So HMRC should be looking at current records rather than those that have been used to prepare a tax return that has already been lodged. HMRC use checks so that they can check how your business records are being kept and make suggestions to you about these, if necessary.
We check the time limits for HMRC to raise an enquiry and the circumstances for this, to ensure that the enquiry is within HMRC powers. Following this initial check, we analyse HMRC’s request for further information against the accurate information and formulate a response that offers relevant explanation and technical reference to reach a swift conclusion.
Our experience of HMRC queries have been with clients that have joined us at ajftaxation after they have received an enquiry letter from HMRC. We have analysed the information and the filing of the tax returns in question and used technical reference to tax legislation and tax cases where necessary in order to minimise any additional tax liability and minimise penalties where tax has been payable.
If you believe that your tax returns have been filed with incomplete or incorrect information, this may be regarded as a deliberate error. We can help you make the appropriate disclosure.