MFW Tax Investigation Service

Increased scrutiny

HMRC use a sophisticated database called Connect to start more than 80% of enquiries. Connect analyses over 55 billion lines of data, including social media accounts, DVLA records, land registry and bank accounts.

The number of HMRC enquiries over 2023/24 increased by 21% and HMRC generated an additional £34bn in tax by targeting non-compliance.

The Labour government have pledged to invest £555m a year in additional HMRC resources and so the increase in HMRC enquiries looks set to continue.

HMRC enquiries can be random, anyone can be targeted, even if you have done nothing wrong. If HMRC select you for an enquiry, they will potentially look at all your books and records and/or ask for more detail on specific transactions and may then raise an assessment for additional tax due.

Peace of mind

Our normal accountancy fees do not include the cost of dealing with enquiries, which can be costly and complex, even if no additional tax becomes due. Subscribing to our Tax Investigation Service will mean that, if you are targeted, we can represent you at no extra cost, ensuring you get the best possible defence.

For a relatively low cost, our Tax Investigation Service protects against fees we may incur dealing with HMRC enquiries. We will manage the whole conversation with HMRC and challenge any findings at no cost to yourself. This protection gives you the comfort of knowing that we can defend you at no extra cost if you fall under HMRC’s spotlight.

Our service is backed by an insurance policy we have taken out through one of the market leaders, Vantage.

What could an investigation involve?

Some investigations will involve a detailed examination of a specific item on a tax return whilst others may extend to a full review of all individual or business affairs.  HMRC have the power to inspect business documents and assets at your premises, can ask for documents and information, make unannounced inspections and go back up to six years to investigate matters.

Cover for all

For limited companies and partnerships, our Tax Investigation Service provides inclusive cover for all relevant individuals.

So, if your business subscribes to the service, all of your directors or business partners, as appropriate, and their spouses and company secretaries will also receive representation during an investigation into their personal tax affairs as long as we act for the individuals concerned.

Additional benefits

As an additional benefit, the protection provides telephone access to advice on employment, health & safety and general legal issues.

Employment law

Including performance and absence management, TUPE, redundancies, calculating holiday entitlements, grievances, disciplinary processes.

Health & safety

Risk assessments, fire safety, first aid, RIDDOR and more.

General legal issues

Any UK commercial or personal issues.

More details

For a summary of the protection afforded by our service please download our leaflet or contact your local MFW office today.