Tax Investigation Support
Get in touchAt Professional Accountants, we provide confidential and experienced tax investigation support for individuals and businesses and across the UK who are facing enquiries from HMRC.
Whether it’s a full-scale investigation, a VAT review, or an unexpected compliance check, our team helps you navigate the process, protect your rights, and achieve the best possible outcome.
What Does Tax Investigation Support Cost?
The cost of tax investigation support ranges from £500 to over £5,000, depending on the complexity and duration of the HMRC enquiry.
Costs are primarily influenced by the type of investigation, such as an aspect enquiry, full enquiry, or disclosure review, the number of tax years involved, the extent of documentation required, and whether representation or negotiation with HMRC is included. Many firms also offer tax investigation insurance to cover professional fees if an enquiry arises.
Contact Professional Accountants to get customised prices for handling your HMRC investigation.
Why Might HMRC Launch a Tax Investigation Into a Business or Individual?
HMRC may initiate a tax investigation for a variety of reasons linked to potential irregularities or compliance risks, including:
Discrepancies in tax returns – Inconsistencies between reported income, expenses, or declared figures across multiple filings.
Late or missing submissions – Repeated delays or failures to file returns within HMRC deadlines.
Unusual or suspicious claims – Excessive expense deductions, questionable relief claims, or patterns inconsistent with business norms.
Data mismatches – Differences between declared figures and third-party data, such as bank records or employer submissions.
Industry-specific risk factors – Businesses in cash-heavy sectors, such as hospitality or construction, which face higher scrutiny.
Overseas transactions – Involvement in international trading, offshore assets, or foreign income streams that increase audit likelihood.
Random selection – Routine checks carried out by HMRC to ensure overall tax compliance across different taxpayer groups.
Do Tax Investigation Services Include Representation and Direct HMRC Liaison?
Tax investigation support services include complete representation, which involves drafting formal responses, attending meetings, and handling all correspondence to ensure nothing is missed or misinterpreted.
Representation is necessary if the investigation escalates or involves legal risk, as it reduces stress and prevents unintentional admissions. Advisors will also manage deadlines and ensure your rights are upheld throughout the process.
What Types of Tax Investigations Are Most Common?
Businesses and individuals may face several types of HMRC tax investigations, depending on the nature of their filings and financial activity, including:
Aspect enquiries – Focused reviews of a specific area within a tax return, such as expense claims, capital allowances, or income reporting.
Full enquiries – Comprehensive investigations covering all areas of personal or business tax submissions for one or more years.
VAT compliance reviews – Checks ensuring that VAT has been correctly calculated, charged, and reported, common for businesses above the VAT threshold.
PAYE audits – Examinations of payroll systems, employee benefits, and deductions to confirm accurate reporting of employment taxes.
Self-assessment reviews – Inspections of individual or partnership tax returns to verify declared income, reliefs, and deductions.
Random checks – Unprompted investigations initiated by HMRC regardless of prior history or compliance record, used to assess general tax accuracy.
Can You Avoid Penalties and Prosecution With Expert Guidance?
Expert support on tax investigation can significantly reduce your risk of penalties or prosecution.
A tax investigation specialist will assess your exposure, identify any errors or compliance breaches, and work with HMRC to reach a fair settlement.
In many cases, penalties can be reduced by demonstrating cooperation, prompt corrections, and a genuine attempt to comply. If deliberate fraud is ruled out, most investigations result in negotiated repayment plans or adjustments rather than court proceedings.
What Documents and Information Will HMRC Request During an Investigation?
During a tax investigation, HMRC typically requests a range of financial and supporting records to verify the accuracy of submitted returns, including:
Bank statements – Personal and business account statements to cross-check income, expenses, and cash flow activity.
Invoices and receipts – Evidence of sales, purchases, and business-related expenses claimed in tax filings.
Contracts and agreements – Documentation for client work, suppliers, loans, or partnerships to confirm reported income sources.
Bookkeeping and accounting records – Ledgers, journals, and reconciliations showing how figures were calculated and reported.
Payroll and PAYE data – Employee records, payslips, and RTI submissions confirming correct tax and National Insurance deductions.
VAT returns and records – Details of VAT charged, reclaimed, and submitted to ensure compliance with HMRC requirements.
Asset and expense documentation – Proof of major purchases, capital allowances, or depreciation schedules used in returns.
Explanatory notes or statements – Clarifications on accounting methods, unusual transactions, or discrepancies identified by HMRC.
How Long Do Tax Investigations Typically Last for Businesses?
The length of a tax investigation can range from a few weeks to several months, depending on its complexity. Aspect enquiries may be resolved quickly, while full investigations can take a year or more, especially if records are incomplete or if there are disagreements over tax treatment.
Engaging a responsive advisor helps minimise delays and keeps the investigation moving forward through clear, timely communication with HMRC.
Is Hiring a Tax Investigation Specialist a Cost-Effective Step Toward Resolving Disputes?
Hiring a tax investigation support specialist is a wise investment, as tax investigations can result in large backdated liabilities, fines, and business disruption if mishandled.
By using a professional service, you gain peace of mind, reduce the risk of costly mistakes, and ensure your case is managed as efficiently as possible. For high-value disputes, the savings can easily outweigh the support fees.
Contact Professional Accountants for a consultation on getting tax investigation support.