HMRC calls almost every check an “enquiry”. That word covers a polite request for a bank statement and, at the other end, a criminal investigation. The letter you have received is the starting point, not the whole story.
Solaratax Limited acts for people and companies who have been contacted by HMRC, and for those who want their tax affairs straightened before a letter arrives. We are chartered accountants first: we already prepare returns and accounts, so we know how an enquiry looks from both sides of the file.
Who and what HMRC can look at
An enquiry can sit on an individual, a sole trader, a partnership, a company or a trust. It can cover Income Tax, Capital Gains Tax, Corporation Tax, VAT, Inheritance Tax or the PAYE the business runs as an employer — including directors’ pay and benefits.
Some cases close with a short exchange of letters. Others involve a review of business and personal records, a meeting, or a visit to the premises. Those enquiries take longer and feel more intrusive. That is why you should not send a bundle of papers until someone has checked what HMRC is actually entitled to see.
Civil settlement or criminal case
Almost all HMRC investigations stay civil. HMRC wants the tax that should have been paid, interest, and often a penalty. Where they suspect marketed avoidance they may open the case under Code of Practice 8. Where they suspect serious fraud they may use Code of Practice 9 — or, in a smaller number of cases, investigate with a view to prosecution.
A case that starts as a letter can be moved up if new information appears, or if the replies are handled badly. Specialist representation from the first response reduces that risk. If more tax is due, we present the facts so the liability and penalty are no higher than they should be, and we can ask HMRC for Time to Pay rather than a single lump sum.
How Solaratax helps
We read the letter, identify who is running the case and what powers they are using, and take over the correspondence. You stay informed; you decide whether any settlement is accepted. As far as we can, you do not deal with the inspector day to day.
Call 01615 314179 or email enquiries@solaratax.co.uk for a free, confidential discussion. We will not contact HMRC in your name until you instruct us to act.
Questions we are asked
Related investigations
Personal tax investigations
Most HMRC enquiries sit on individual tax returns — employed people, landlords, investors and the self-employed.
Company tax investigations
Corporation Tax enquiries, directors’ private records, and the way VAT or PAYE often gets pulled in.
HMRC compliance checks
A compliance check is often the first visit. Handled well, it stays a check. Handled badly, it becomes a full enquiry.
Code of Practice 9 and the Contractual Disclosure Facility
Serious suspected fraud: admit and disclose under CDF, or deny — with a 60-day outline disclosure if you accept the CDF.
Talk to Solaratax
128 City Road, London, EC1V 2NX. 01615 314179. enquiries@solaratax.co.uk. Free, confidential, no obligation.
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