Most tax investigations HMRC opens are into returns filed by individuals. Some start because interest, dividends, rental income or a capital gain looks missing. Many sit on self-employed returns, where HMRC thinks profits are easier to understate — income left out, or expenses claimed that the records do not support.
If HMRC is already looking at a company, they often want to look at the directors’ personal returns as well, especially in a small or family company. A company enquiry does not automatically give them the right to personal bank statements. We keep those requests inside the law.
Aspect enquiry or full enquiry
People talk about “aspect” and “full” enquiries. The legislation does not split them. In practice an aspect enquiry asks about particular boxes on the return. A full enquiry looks at the whole return and usually the records behind it.
No business on the return
HMRC can match bank interest and dividends to the return. If the figures differ, they will ask why. Capital Gains Tax arises on disposals; some assets are exempt (a qualifying main home, or small proceeds under the published limits). If they think a gain was missed, they open an enquiry.
These cases are often document-heavy rather than technical — until receipts are missing. A landlord who refurbished a buy-to-let without keeping invoices may find HMRC refusing the cost. We build alternative evidence: completion statements, photos, contractor messages, comparable quotes — so you are not taxed on a gain that never existed in economic terms.
Where there is a business
On a full enquiry into a trade, HMRC typically ask for the business records and a sample of personal accounts. They will read the accounts your accountant prepared. They often want a meeting to understand how the business actually takes money. Do not attend that meeting alone. Where we can, we handle it so you are not answering unprepared questions in the room.
If they find an error that also applied in earlier years, they can assess those years. In the worst cases the window can run to 20 years. That is why the first reply matters.
How Solaratax helps
We test what HMRC has asked for against their powers, explain genuine differences between the records and the return, and negotiate any addition to profits and the penalty. If the enquiry spilled out of a company check, we keep directors’ private affairs out of scope unless HMRC has a proper basis.
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
Company tax investigations
Corporation Tax enquiries, directors’ private records, and the way VAT or PAYE often gets pulled in.
HMRC tax investigations
What an HMRC enquiry actually is, how it can escalate, and how we keep the case in the civil system wherever we can.
HMRC voluntary tax disclosure
Telling HMRC before they tell you. Unprompted disclosure is how penalties fall and how criminal risk is reduced.
Talk to Solaratax
128 City Road, London, EC1V 2NX. 01615 314179. enquiries@solaratax.co.uk. Free, confidential, no obligation.
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