Tax Investigation Helpline

Why HMRC Investigates Corporation Tax

HMRC carries out routine checks on company tax returns to ensure businesses are paying the right amount of corporation tax. However, sometimes these checks escalate into formal investigations. This might happen if: - Figures on your tax return don’t match other information HMRC holds. - Large or unusual expenses have been claimed. - There are inconsistencies in reported income and expenditure. - A business operates in a sector considered “high risk” for tax avoidance.

Even honest mistakes can attract scrutiny. Unfortunately, once an investigation begins, it must be taken seriously, as HMRC has wide-ranging powers to request documents, interview directors, and reassess past returns.

What’s at Stake in a Corporation Tax Investigation If HMRC finds errors in your tax returns, the consequences can be severe. These may include:

• Backdated tax bills covering multiple years.
• Interest and penalties on underpaid tax.
• Repetitional damage, especially if an investigation becomes public.
• In the most serious cases, criminal prosecution.

Even if you’ve done nothing wrong, the investigation itself can disrupt your business, absorb valuable time, and create huge amounts of stress. Having professional support is the key to limiting disruption and ensuring your rights are protected.

How We Help

At Tax Investigation Helpline, our dedicated team understands the complexities of corporation tax investigations. We provide:

• Immediate expert advice: As soon as you’re contacted by HMRC, we can step in, review your situation, and outline the best course of action.
• Dealing directly with HMRC: We act as your representatives, handling all communication and correspondence so you don’t have to face HMRC alone.
• Forensic review of your records: We’ll examine your accounts to identify any issues and present them in the best possible way to HMRC.
• Negotiation and settlement: Where tax is owed, we can negotiate reduced penalties and structured repayment plans. Where HMRC is overreaching, we challenge them robustly on your behalf.
• Protecting directors: If HMRC is investigating directors personally, we ensure your rights and responsibilities are safeguarded.

Our goal is always to achieve the best possible outcome with the least disruption to your business.

Common Triggers

We See In our experience, some of the most common reasons companies face corporation tax investigations include:

• Disallowed expenses (such as personal costs claimed through the company).
• Transfer pricing or inter-company transactions.
• Errors in R&D; tax credit claims.
• Undeclared income or discrepancies with VAT or PAYE returns. - Persistent late or incorrect filings.

Recognising these patterns helps us anticipate HMRC’s approach and prepare your strongest defence.

Don’t Face HMRC Alone If your business is under investigation, the worst step you can take is to ignore HMRC or try to manage the situation yourself without specialist knowledge. HMRC investigators are trained to extract information that can be used against you. Having a tax investigation expert by your side from the outset ensures you don’t make costly mistakes.

At Tax Investigation Helpline, we’ve helped countless businesses navigate complex corporation tax enquiries. We know how HMRC works, what they’re looking for, and how to resolve matters quickly and effectively.