What is a tax investigation?
Basically, it's when HMRC make enquiries into your tax affairs. This can range from a phone call to check your VAT return to a letter to check your income or corporation tax return to a full blown investigation where they will go through the full books and records on site.
HMRC enquiries are evolving and are now better targeted and more results orientated with greater focus on perceived tax loss. There doesn’t need to be a reason for HMRC to trigger an investigation. Every taxpayer who submits a tax, VAT or PAYE return is at risk. No-one is immune.