Yes. The number of years HMRC can look back depends on the facts, the type of tax and whether HMRC believes the issue was careless or deliberate. If historic tax returns, undeclared income or missing records are involved, it is important to get advice before offering explanations or figures.
HMRC Tax Investigation FAQs
Frequently Asked Questions
Answers to common questions about HMRC tax investigations, VAT inspections, COP 9 disclosures, penalties and compliance checks.
If HMRC has contacted you, the safest first step is to understand exactly what they are asking before you reply. These FAQs explain the issues clients most often face and when specialist advice can help.
Read the letter carefully, note the deadline and avoid sending a rushed reply. HMRC letters often look routine, but the wording can reveal whether this is a compliance check, a VAT inspection, a disclosure issue or something more serious. We can review the letter and help you decide what should be provided before you respond.
A compliance check is HMRC reviewing whether a tax return, VAT return, PAYE record or business tax position is correct. It may begin with a request for documents or answers to specific questions. A clear, complete and well supported response can help stop the check from widening unnecessarily.
Code of Practice 9, often called COP 9, is used where HMRC suspects serious tax fraud. It gives the taxpayer an opportunity to make a full disclosure under the Contractual Disclosure Facility. COP 9 should be treated seriously and advice should be taken before any response is made.
A voluntary disclosure can be the right approach where tax has been underpaid or income has not been declared. The disclosure needs to be accurate, complete and carefully presented. We help clients assess the position, calculate liabilities and explain the circumstances clearly to HMRC.
Yes. We advise on VAT inspections, VAT return errors, output tax, input tax, record keeping, penalty issues and HMRC information requests. We can review the figures, prepare the response and correspond with HMRC where appropriate.
Penalties depend on the behaviour HMRC alleges, the quality of disclosure and the level of cooperation. Penalties can often be challenged or reduced if the facts support it. We review HMRC assumptions, explain mitigation and help prepare a proper response.
Yes. In many cases we can handle correspondence with HMRC, prepare written replies and help manage meetings or calls. This keeps communication consistent and reduces the risk of unclear answers being misunderstood.
Yes. We advise company directors, sole traders, landlords, contractors, partnerships and private individuals. Matters can involve corporation tax, self assessment, VAT, PAYE, CIS, offshore income, rental income or undeclared profits.
As soon as possible. Early advice helps preserve options, avoids missed deadlines and reduces the chance of HMRC widening the enquiry. If you have received an HMRC letter, contact us before sending documents or explanations.
Need Advice About An HMRC Letter?
If you have received a tax investigation, VAT inspection, COP 9 or compliance check letter, contact London Tax Investigation before replying to HMRC.