What Leads to a Tax Enquiry?
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In this episode, Shaz looks at what, in reality, triggers a tax enquiry by HMRC and what you should and shouldn’t do during any tax enquiry.
\\nIt’s often thought that the selection for tax enquiries is random but this is very far from the truth there are a number of reasons that play a role in the choice HMRC make for those who they decide to select for a tax enquiry.
\\nShaz shares great content about what makes any business more likely to be selected and what you can do to cooperate but also what to be aware of when going through an enquiry.
\\nOn average HMRC raise around 30 billion a year through compliance checks so it’s vital that any business implements this great advice from Shaz.
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KEY TAKEAWAYS
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- Paying your taxes late will trigger an enquiry. Avoid late tax returns to avoid both penalties and a tax enquiry. \\n
- If somebody tips off the HMRC, they are likely to follow up and this line of enquiry is relatively common. \\n
- Sometimes mortgage lenders contact HMRC if the numbers don’t add up. \\n
- A tax enquiry may be triggered if you have completed business for someone they are looking at. \\n
- Having mistakes on your tax return will lead to an enquiry \\n
- If a file is identified as high risk the HMRC risk assessment team will go through the file and decide whether to move onto an enquiry. \\n
- You should cooperate with HMRC but choosing not to meet face to face cannot be seen as a sign of a lack of cooperation. \\n
- Always ask HMRC ‘is this reasonably required’ and ask them to tell you why they need the information. \\n
- You should negotiate any penalties, they can come down so never accept the first figure. \\n
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BEST MOMENTS
\\n‘Late payment will result in the system flagging you as a higher risk’
\\n‘Never ever lie during an enquiry, the penalties will be higher if you do’
\\n‘HMRC raise around 30 billion a year through compliance checks. It’s a big deal and that’s why they keep doing it’
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VALUABLE RESOURCES
\\nshaz@aaa-accountants.co.uk
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ABOUT THE HOST
\\nShaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
\\nShaz 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.
\\nHe 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.
\\nYou can find Shaz on:
\\nThis show was brought to you by Progressive Media
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