Businesses across London, Essex and beyond need to be prepared for a potential tax investigation, according to Haslers Chartered Accountants.
As the nation recovers from the impact of COVID-19, HM Revenue & Customs has started to ramp up compliance checks and tax investigations as the Treasury attempts to recover the substantial costs of the pandemic.
Last year saw a dip in the tax authority’s investigations as it also dealt with the challenges of Coronavirus. For example, it conducted 75% fewer Stamp Duty Land Tax investigations, according to figures obtained by law firm Boodle Hatfield. However, in recent weeks many taxpayers have received nudge letters relating to overseas income and compliance checks for schemes used during the pandemic, like furlough and the Self Employment Income Support Scheme.
“It is also currently running a campaign around overseas income and sending letters to many taxpayers based on the information it has received or discrepancies in tax data from other authorities.”
O'Shea said that HMRC’s tax investigation services had become more effective thanks to its increased use of technology and collaboration with other authorities in the UK and around the world.