HMRC Tax Investigations
Solicitors

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The good news is that our specialist HMRC solicitors have years of experience helping clients prepare for and deal with tax investigations. Since 2014, we have been providing expert legal advice and representation at an affordable price.

Whether you have a substantial income, overseas investments or have non-domicile status, we will help you navigate the complexities of your case and help you avoid substantial fines or criminal charges.

If you need legal advice on an HMRC investigation, speak to one of our tax investigation solicitors in Birmingham, Northampton and London today at info@witansolicitors.co.uk.

How We Can Help

Our HMRC lawyers excel at helping clients avoid and mitigate penalties by:

• Negotiating penalties
• Corresponding with HMRC
• Determining tax risk
• Advising on voluntary and involuntary tax disclosures
• Representing clients at meetings
• Representing clients during civil or criminal litigation in tribunals and courts
• Ensuring your personal tax information is kept private
• Responding immediately to dawn raids, arrests and interviews under caution
• Converting criminal investigations to civil proceedings where possible
• Challenging restraint orders
• Assisting with Unexplained Wealth Orders
• Assisting with Freezing Orders
• Appealing to the Tax Tribunal

If you are facing a tax investigation, you should contact our HMRC solicitors at the earliest opportunity to avoid heavy penalties. Our tax specialists have extensive experience dealing with HMRC and will support you at every stage. We can even advise on regulatory and compliance issues to prevent investigations from happening in the first place.

Types of Investigations We Can Advise On

Our tax investigation solicitors can offer confidential and jargon-free advice on:

• Tax Evasion and Avoidance – HMRC has aggressive anti-tax avoidance policies so it is crucial to get the legal backing of a specialist in this practice area
• Offshore Tax Evasion and Avoidance – Whether you are facing a current offshore tax avoidance investigation or suspect you will be targeted later down the line, we can help you prepare
• VAT Inspections and Investigations – Our tax investigation lawyers will work with you in confidence to resolve the matter swiftly
•  HMRC Criminal Investigations – If HMRC pursues a criminal investigation against you, it is important to speak to one of our solicitors as soon as possible
• Code of Practice 8 – From meetings and negotiations to ensuring that your case remains a civil investigation, we can handle every aspect of the investigation
• Code of Practice 9 – If HMRC suspects you have committed a serious offence, they will carry out a Code of Practice 9 investigation. Our tax lawyers are on hand to support you throughout every stage of the investigation

If you are facing an HMRC investigation, your reputation is not the only thing that is on the line. You also risk potential fines and criminal charges. That is why it is important to get legal advice to settle the matter quickly. Our lawyers will help you de-escalate the case and achieve a desirable outcome.

What To Do If You Are Facing an HMRC Investigation

As one of the most powerful investigating bodies in the UK, HMRC has the power to carry out civil or criminal investigations if they suspect that tax or duty has been underpaid, under-declared, evaded or that tax fraud has been committed.

Generally, civil tax investigations take place when the amount of tax evaded is significant. This includes avoidance schemes used to underpay tax and artificial tax arrangements. Civil investigations may also be used in cases where serious tax fraud is suspected. However, a civil investigation may be escalated to a criminal tax investigation if it does not proceed appropriately or more serious tax evasion is revealed.

Our tax solicitors can advise on and defend all aspects of tax investigations, including HMRC interviews, tax fraud and criminal tax evasion. If you need advice on a tax investigation, contact our HMRC solicitors today.

Why Choose Witan Solicitors? 

Since 2014, our tax lawyers have been helping clients facing cases before HMRC. We are not intimidated and will help you avoid potentially life-changing penalties. With our proven track record of successfully defending clients during investigations, we have been recognised for our extensive knowledge and expertise. With us as your legal partner, you benefit from: 

• Established tax law firm in 2014 
• Legal 500 recognised law firm
• Practical legal advice without confusing jargon
• Tax experts in negotiating settlements and penalties
• HMRC solicitors in London, Northampton and Birmingham 

FAQ

What happens during an HMRC investigation?

Section 9A of the Taxes Management Act 1970 gives HMRC the power to open an investigation into tax returns if they suspect tax has been underpaid, under-declared or evaded. These investigations are usually handled through written correspondence.

Code of Practice 8 investigations generally involve informal meetings and correspondence, while Code of Practice 9 investigations will require you to detail your tax affairs, as well as other activities that may have caused irregularities.

Will my case be taken to court?

If you are facing a civil investigation, your case will not be taken to court as long as you can reach an agreement with HMRC.

If you are facing a criminal investigation, your case will go to court.

What HMRC has made the wrong decision?

If you are unhappy with HMRC’s decision, there is no need to worry. You can ask an impartial officer to review your case and if you are still unsatisfied with the outcome, you can appeal to the court or tribunal.

Which offences are likely to result in prosecution?

The following serious tax fraud and tax avoidance offences may result in criminal prosecution:

• Income tax evasion
• VAT evasion
• Money laundering
• Cheating the public revenue
• Providing false tax information
• Smuggling
• Fraudulent evasion of indirect taxes on imported goods

What are the potential penalties?

The potential penalties for HMRC tax investigations include fines and imprisonment. The penalty you receive will depend on the type of offence committed, failure to take reasonable care, as well as deliberate understatement or concealment.

Generally, if you have made a genuine mistake on your tax return, you will be asked to pay the remaining tax within 30 days of the decision, plus any interest. However, deliberate underpayment may lead to an extra 15% – 100% on top of your payment. In severe cases, this figure can go up to 300%.

What is an HMRC tax investigation?

If a business or individual is suspected of tax evasion, VAT fraud or tax fraud, HMRC has the power to launch a civil or criminal investigation. A civil investigation may be upgraded to a criminal one if the conduct involved means that a criminal sanction is appropriate or HMRC wishes to send a deterrent message.

What information will HMRC ask for?

Depending on the nature of the investigation, HMRC may ask for:

• Bank statements
• Credit card statements
• Copies of emails and correspondence
• Expense receipts
• Payroll records
• Quotes from third parties
• VAT records

How far back can HMRC investigations go?

For careless errors, HMRC may investigate up to 6 previous years; for deliberate errors, HMRC can go back up to 20 years.

What business-related taxes can HMRC investigate?

Aside from income tax, HMRC can also investigate:

• Capital gains tax
• Climate change levies
• Construction industry schemes
• Corporation tax
• Insurance premium tax
• VAT

How long will it take for HMRC to complete the investigation?

The length of the investigation will depend on a range of factors, including how cooperative you are, the extent of HMRC’s concerns and the conduct you have been accused of.

What should I do If HMRC shows up on my premises with a search warrant?

To ensure that HRMC does not abuse its powers when searching your premises or seizing property, contact our HMRC lawyers.

Do I have to attend an HMRC interview?

While there is no legal obligation to attend a voluntary interview with HMRC, not attending could put you at risk of being arrested. Our solicitors can help you prepare for the interview and protect your position.

What should I do if I am prosecuted over a tax investigation issue?

It is wise to contact a solicitor specialising in this practice area immediately. We will help you mitigate the commercial and personal impact of prosecution.

What usually triggers an HMRC Investigation?

If the figures submitted on a return seem to be incorrect or unusual, this may trigger an HMRC investigation.

Other incidents that may lead to investigations include:

• HMRC receiving a tip or report
• Being in a high-risk industry
• Consistently filing tax returns late
• Having a significant increase in costs or decline in income
• Inconsistency between tax returns and standard of living
• Being in a targeted sector
• Trading non-physical products

What does an Unexplained Wealth Order do?

An Unexplained Wealth Order allows the authorities to identify and seize any property that is suspected to have been purchased through laundering. If you become subject to an Unexplained Wealth Order, our lawyers can help.