What is a Tax Investigation?
Simply put it's when HMRC make enquiries into your tax affairs. This can range from a phone call to a full blown investigation where they will go through the full books and records.
In recent years, we have seen an increase in the number of enquiries, both into individual tax returns and company returns. The tax authorities now have more powers than ever before to investigate UK businesses.
An enquiry or investigation into your tax affairs by HMRC can be disruptive, intrusive and expensive. It can also be a long and time-consuming process, in some cases lasting for a year or more, which in turn can lead to spiralling costs.