Tax Investigation Helpline

Why HMRC Investigates Failure to Notify

HMRC takes a tough stance on taxpayers who don’t come forward to declare their obligations. Common reasons investigations are triggered include:

• Starting a business but failing to register for tax.
• Not registering for VAT once turnover passes the threshold.
• Failing to register for PAYE when employing staff.
• Omitting rental or overseas income from self-assessment.
• Deliberate concealment of taxable activity.

HMRC cross-checks information from banks, employers, property transactions, and other government departments. If they find inconsistencies, they will often open a full enquiry.

What’s at Risk in a Failure to Notify Investigation The consequences can be serious and far-reaching:

• Backdated tax bills covering all undeclared years.
• Substantial penalties, which can be up to 100% of the unpaid tax.
• Interest charges on late payments.
• Increased scrutiny in future, with HMRC monitoring your tax affairs more closely.
• In severe cases, criminal prosecution for deliberate tax evasion.

Even if your failure to notify was unintentional, HMRC may still impose penalties unless you can demonstrate reasonable care.

How We Help

At Tax Investigation Helpline, we have extensive experience in supporting individuals and businesses through failure to notify investigations. Our service includes:

• Immediate advice: We assess your situation and explain HMRC’s letter in clear terms.
• Voluntary disclosure support: If appropriate, we help you make a disclosure before HMRC takes further action, reducing penalties.
• Representation: We handle all communication with HMRC, ensuring your rights are protected.
• Calculation and negotiation: We establish the true liability, negotiate with HMRC, and work to reduce penalties.
• Future compliance support: We help you set up the right systems to avoid repeat issues.

Our goal is always to minimise financial impact and resolve matters as efficiently as possible.

Common Scenarios We See Failure to notify cases often arise in situations such as:

• Individuals who have become landlords but didn’t declare rental income.
• Small businesses unaware of VAT registration thresholds.
• Directors drawing income from companies without proper tax reporting.
• People with overseas income or assets not disclosed to HMRC.
• Start-ups failing to register for Corporation Tax in time.

We understand these situations can arise through oversight, not deliberate evasion — and we make sure HMRC takes this into account.

Don’t Face HMRC Alone HMRC treats failure to notify seriously, and their investigators are trained to maximise penalties. Trying to deal with them without professional help can make matters worse.

We’ve successfully guided clients through countless investigations, often securing reduced liabilities and penalties by presenting cases correctly and negotiating firmly.