Why Has HMRC Targeted my Business? Is it fair?

Most tax investigations occur when HMRC has reason to believe that your business isn’t paying its taxes in full. Common issues that can lead to a tax investigation include:

• Filing tax returns and paying taxes late, especially when this occurs frequently
• Inconsistencies or unusual differences between your tax returns
• Using offshore bank accounts or other signs of money being transferred out of the UK
• Operating a business that frequently takes cash payments
• Operating a business in an industry that’s been identified as being at high-risk for tax evasion and/or income misreporting
• Making errors in your tax payments that need to be addressed and corrected
• Receiving income from real estate
• Reporting abnormally high costs compared to similar businesses in your industry