HMRC has been in touch. We will take it from here.
When HMRC comes calling, we handle the enquiry from the first letter, make sure your returns are complete and accurate, and fight to keep penalties as low as the facts allow.
How HMRC decides who to check
An enquiry does not always mean you have done something wrong. HMRC opens them for three main reasons.
Data from third parties
HMRC receives information from banks, payment providers, online platforms and marketplaces, and other bodies. It compares that data with what you have reported. If the numbers do not match, you can be picked.
Information from people
Tip-offs from the public, former partners, ex-employees or competitors can trigger an enquiry. This is known as human intelligence, and HMRC acts on it.
Random selection
HMRC runs a random enquiry programme. Any business can be picked at random to be looked at, however tidy its affairs, so being chosen says nothing about you.
What happens when HMRC opens an enquiry
You hand it to us. We deal with HMRC directly as your agent, so you carry on running your business.
The letter arrives
Send us a photo on WhatsApp straight away. We note the deadline and tell you what it means.
We take over
Once you authorise us, HMRC deals with us. You do not need to speak to them.
We check your figures
We go through your records, bank statements and returns, and compare them with what HMRC holds.
We respond with evidence
We send HMRC clear, accurate answers and supporting records, and justify that your returns are complete and accurate.
HMRC reviews
HMRC either closes the enquiry with no change, or proposes an adjustment.
We negotiate the outcome
If there is extra tax to pay, we challenge the figures and fight to reduce any penalty.
If something does not add up, we fight to keep the money in your pocket
Where HMRC finds an error, penalties depend on the reason for it. These are the maximums, shown as a share of the extra tax due. They are not fixed amounts.
How we reduce penalties
- We show HMRC the error was an honest mistake, not deliberate
- We make the right disclosures and cooperate fully, which can reduce a penalty significantly
- We challenge HMRC's figures and its view of the facts
- We check the penalty has been calculated correctly
And where we can, suspend them
- Where an error was careless, HMRC can suspend a penalty for a period, if conditions are met
- If you meet the conditions, the penalty is cancelled and never paid
- We negotiate suitable conditions and help you meet them
Be enquiry-ready all year
The best defence is clean, up-to-date records. This is what monthly bookkeeping with us gives you.
- Every income and expense recorded as it happens, with receipts and invoices attached
- Bank accounts reconciled so your records match what banks and platforms report to HMRC
- Returns that are complete and accurate, with workings you can show if asked
- Records kept safely. Self-employed people should keep records for at least 5 years after the 31 January filing deadline
Got a letter from HMRC?
- Do not ignore it. Letters have deadlines, and missing them can make things worse
- Do not reply or send documents on your own. What you say can affect the outcome
- Send us a photo on WhatsApp. We will tell you what it is and what happens next
- Stay calm. Many enquiries close with no change, and we will tell you where you stand
Other compliance help
We can also help if you are behind, or have spotted something you want to put right yourself.
Late filing penalties
We get you up to date and challenge penalties where there are grounds.
Coming forward
Spotted a past mistake? Putting it right yourself is generally easier than waiting for HMRC to find it.
CIS and VAT checks
We handle HMRC checks on construction scheme and VAT records, as well as income tax.
Agreed fee upfront
Enquiries are quoted individually. We agree the fee before we start.
Compliance questions
Does being picked mean I have done something wrong?
No. Some enquiries are random, and others come from data matching. An enquiry is a check, not an accusation. It does mean your records need to stand up, which is where we come in.
Will HMRC speak to you instead of me?
Yes, once you authorise us as your agent. HMRC then deals with us on your behalf.
What if HMRC finds a mistake?
You will need to pay any extra tax and interest. We work to keep any penalty as low as possible, and in suitable cases to have it suspended. We cannot promise an outcome, but we will fight your corner.
How long does an enquiry take?
It varies a great deal. Some close within weeks and others take months. We keep you updated and keep things moving.
What if I did not keep good records?
Tell us as early as you can. We will help you rebuild what we can from bank statements and platform records, and present it clearly to HMRC.
This page is general information, not personal tax advice. Penalty rules and time limits are summarised and can vary by tax and by case. Please speak to us about your own circumstances.