Company tax returns are subject to a comprehensive checking system. If the checks indicate a risk that the return may be incorrect HM Revenue & Customs will open an enquiry, often referred to as a compliance check, into the return. A percentage of enquiries are also made completely at random.
The compliance check can be into specific items on the return or a full enquiry challenging the fundamental accuracy of the accounts and tax return. Full enquiries will usually involve HMRC asking to see all of the company's books and records and may result in enquiries being opened into the directors personal tax returns, PAYE and VAT liabilities as well.
If HMRC find errors in the return which result in additional tax payable this will lead to interest being charged on the underpaid tax and penalties being charged for filing an inaccurate Company Tax Return. The penalties can range from 0 - 100% of the tax underpaid.
James Cowper Kreston's business tax team has many years of experience in dealing with HMRC enquiries into company tax returns, PAYE and VAT. Using this experience and our comprehensive knowledge of the relevant legislation we can deal with HMRC on your behalf to achieve the best outcome for your company.
You do not have to be an existing client for us to assist you. We have a track record of helping businesses who have found themselves under HMRC scrutiny and turned to the us for advice.