In this episode, Shaz answers the question every individual and business owner wants to know the answer to ‘What leads to a tax enquiry?’

HMRC haven’t ever made it clear and say it’s a random selection process but that’s not the way they do things and the majority of tax enquiries are initiated because of numbers and patterns not adding up.

Shaz explains exactly what triggers an enquiry and shares great information on what to do if you are involved in a tax enquiry because you don’t have to give them everything and anything they request.

 

KEY TAKEAWAYS

• Filing a late tax return regularly means it will be highly likely you will be subject to a tax enquiry.
• If you pay your taxes late this identifies you are a higher risk.
• Somebody tips HMRC off about things, these may or may not be true but it’s likely to result in an enquiry.
• HMRC can access your credit file and look at the number of credit cards and loans you have, cross-referencing this with the information you have submitted to them.
• Sometimes mortgage lenders will tip-off HMRC if the figures don’t add up.
• You may get caught up in someone else’s tax enquiry and this could lead to a tax enquiry for you.
• Never lie during an enquiry, HMRC inspectors will give higher penalties if you do.
• When you are asked to attend a meeting, you can choose not to attend.
• If you decide to meet with them request a detailed agenda and timings for the meeting.
• HMRC can ask for personal bank statements but challenge this.
• They are entitled to ask for information reasonably required – ask them to justify why they require certain information.
• Don’t give them everything and anything they ask for.

 

BEST MOMENTS

‘Submit tax returns on time to avoid penalties and an enquiry’

‘Mistakes and patterns that don’t add up result in tax enquiries’

‘HMRC raise around 30 billion pounds per year through compliance checks’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook
•   LinkedIn
•   Instagram
•   YouTube.