HMRC has become a force to be reckoned with


This is because HMRC have become far more speedy and proactive than before when dealing with tax evasion.  Since 2012 it has introduced new measures to tackle tax evasion.


Who is targeted?


According to HMRC, compliance checks are usually triggered when figures entered on the return appear to be wrong or when a very small business suddenly makes a very large claim for VAT, or one with a large turnover declares a very small amount of tax.

However, in our experience, it can also be all of some of the following:

  • HMRC receives a tip-off
  • you work in a high risk industry, for example one that routinely takes cash payments
  • you have a large fall in income, increase in costs or there are inconsistencies between different returns
  • you file your returns consistently late
  • your costs are above the industry norm
  • your tax returns are inconsistent with your standard of living
  • you are in a sector that HMRC has decided to target

Also, it could of course just be random.

The attached guide provides details of what to expect if you are the subject of an investigation.

Click to download the full guide


You can protect yourself from the costs of an HMRC investigation


PKB offers fee protection insurance to help business owners protect against the cost of HMRC investigations. While we can’t prevent HMRC from investigating your company, we can provide you with a defence. For a yearly fee, our insurance service provides cover for:

  • record checks
  • inspections
  • defence costs
  • interventions
  • aspect enquires.

You also get unlimited access to our comprehensive business legal helpline.

Contact us on 01344 776225 or email for more information on how we can protect you from the costs of investigation.

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Alan Hindley

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