HMRC now receives an unprecedented amount of data automatically about taxpayers and businesses. It analyses the data using its CONNECT data analysis program, identifying discrepancies and cases for enquiry. HMRC has wide-reaching investigative powers and can open a variety of tax enquiries. These can be relatively simple, focusing on one or two specific issues, or be highly complex, looking at all your finances and tax affairs.
BDO and tax enquiries
In our experience, it is important to have full understanding of all the issues relevant to a tax enquiry and the risks you may face as a result. We can also anticipate when HMRC may use its powers to issue information notices, inspect your business premises and issue discovery assessments to collect tax for earlier years.
BDO’s Tax Dispute Resolution team will carry out a comprehensive analysis of the situation whether it involves UK or overseas assets or is personal, partnership, corporate or trust related. We will explain the options available and agree with you the most appropriate way to bring all your UK tax affairs up to date. We will also, of course, work with you to establish the potential cost of the tax enquiry and explore any ways this could be mitigated.
Our approach to a tax enquiry is to start by developing a robust plan of action and agree a way forward with HMRC. We will liaise directly with your other professional advisors and asset managers whenever necessary.
We can prepare a disclosure report to accurately present the relevant facts and figures to HMRC. We handle all meetings with HMRC before negotiating a solution covering tax, interest and penalties as appropriate. Our focus is on getting final closure of all issues, giving you the final say, while avoiding disruption and minimising your direct contact with HMRC.
We believe that this approach to dealing with HMRC delivers the best results for our clients.