It is not uncommon for businesses and self-employed workers to face an audit from time to time. Whilst an investigation triggered by the HMRC suspecting inaccuracies may be more serious, audits can also be triggered as part of routine procedure.
If you are registered for VAT or have employees paid through PAYE you should expect and prepared for a routine tax audit. Routine tax audits are less likely when it comes to income tax or corporation tax. On average tax audits can be expected every 5 or so years.
A tax audit and inspection can be extremely stressful and confusing. Unless you are confident and have prior experience dealing with tax investigations you should seek professional advice.
How do you know if you’ve been chosen for a tax audit or tax investigation?
The HMRC will notify you if you have been selected for a tax audit or investigation. For a tax audit they normally will ask you to check your tax records. A tax investigation will begin with a letter stating what information they are requires.
If you are dealing with a tax audit or investigation you should seek advice as soon as you are notified.