HMRC has the power to investigate your tax affairs going back up to 20 years in cases of serious tax evasion or fraud. However, for most cases, the time limit is much shorter. Generally, HMRC can investigate your tax affairs for up to 4 years after the end of the tax year in question. This
There are many ways that individuals and businesses can commit tax evasion. Some common examples include failing to report all income earned, claiming false deductions, hiding assets in offshore accounts, and underreporting the value of assets. Other examples include failing to pay payroll taxes, failing to file tax returns, and using fake social security numbers.
Tax evasion is the illegal act of intentionally not reporting or underreporting income to the government in order to avoid paying taxes. This can be done by failing to report all income earned, claiming false deductions, or hiding assets in offshore accounts. It is different from tax avoidance, which is the legal use of tax
There are several reasons why HMRC may initiate a tax investigation. One common reason is if they suspect that you have underreported your income or claimed false deductions on your tax return. They may also investigate if they suspect that you are involved in illegal activities, such as money laundering or tax evasion. Additionally, if
A HMRC tax investigation typically begins with a letter or phone call from the tax authority, informing the business or individual that they are under investigation. The investigation can cover a range of tax-related issues, including income tax, corporation tax, VAT, and PAYE. The HRMC will request access to financial records and other relevant documents,