A tax investigation can be very stressful and sometimes a basic self assessment tax return investigations can be time-consuming as well. If you’re a business owner then submitting your tax return to HMRC once in a year is your responsibility. You must provide HMRC about all the details of your income and the profit you’ve earned through your business.
In what conditions HMRC could investigate you?
If you fail to submit your return to HMRC within the deadline, or your return seems you made some miscalculations or something that does not match with your given details, etc. then there is a chance that HMRC could investigate you. There could be a bunch of reasons for that HMRC can go for your self-assessment tax return investigation:
You failed to submit your tax return within the deadline
Your return has one or more mistakes
there are discrepancies or considerable differences between different returns, such as a large fall in income or rise in costs
The costings seem unusually high for the business in your industry
You have offshore bank accounts
You’re earning revenue from property
Your self-assessment tax returns show a discrepancy in comparison with your present running business
Do you need to consult a professional?
You might be panicking of getting investigated by HMRC or maybe you’ve already suffered from such a situation. Whatever the situation you’ve it’s always better to consult with an expert who can guide you with a valuable suggestion.
DNS Accountants is a highly reputed name in the UK for offering all types of accounting and taxation services. DNS has a team of experts and highly educated chartered accountants in Nottingham who can offer you valuable tips on self assessment tax return investigations and also represent you at any meetings you’ll be called by HMRC. You’ll also be given legal representation once you require it.