Types of tax investigation

If you receive a letter from HMRC notifying you that you are under investigation, you need to understand what that means to you.  HMRC conducts many different types of investigation depending upon the relevant tax legislation:

  1. Check on tax position
  2. Individuals – Investigations under Section 9a Taxes Management Act 1970 
  3. Partnerships – Investigations under Section 12a Taxes Management Act 1970 
  4. Limited companies – Investigations under Paragraph 24 Finance Act 1998 
  5. Residency and domicile
  6. Status
A more recent development

Since March 2019, HMRC has conducted investigations by an alternative route called a “Check on tax position”.  Here HMRC may quote two different tax years rather than just one tax year. This has evolved as a direct result of the information provided automatically to HMRC each year under the Common Reporting Standard.

What should I do if I receive such a letter?

Don’s panic.  If you have an agent, they should be notified automatically.

Most types of tax investigation are straightforward and do not need any specialist involvement.  But for some taxpayers it is obvious from the outset that they will need a specialist like me.  It may be that you feel awkward or embarrassed to talk to your agent.

If you feel uncomfortable answering their questions or believe that there is something that you need to declare, by all means contact me.

What shouldn’t I do if I receive such a  letter?

Panic or simply ignore it.

Help is at hand

If you would like to discuss this matter further, please contact me at paul@pmc.tax or on 07979 313 010.

Main menu