Businesses in the UK face routine tax audits occasionally; however, when the HM Revenue & Customs (HMRC) gets involved, things start to get serious. HMRC will only conduct a tax inspection if it feels that there have been severe breaches and your tax returns are inaccurate. The entire process can be cumbersome and complex. You’d be under a lot of stress as the investigation can take quite some time. It is always recommended to get the help of a chartered tax adviser who can guide you through the complexities of the tax inspection. You can be subject to a tax inspection by HMRC at any point in time. However, adequate preparation and help from a tax expert can help you weather the storm. Let’s look at some of the ways you can avoid a tax inspection by the HMRC.
Hire Chartered Tax Advisers & Accountants
One of the best ways to avoid a tax inspection by the HMRC is to hire a chartered tax adviser and accountant to help with your finances. You’ll attract the HMRC’s attention by submitting late returns or paperwork with many errors. Hiring an accountant will ensure that your paperwork is filed well before the deadline. A professional accountant or tax adviser will also ensure that all your filings are error-free.
A small thing such as rigorously reviewing your paperwork can help you avoid a tax inspection. If you’re planning to do the tax filing yourself, you need to review your work before a final submission with the authorities. As mentioned before, it is always helpful to have an experienced accountant by your side who can handle these complex things for you.
Even if you’ve hired a tax adviser, it is always beneficial to go over the paperwork yourself before asking your accountant to submit the paperwork. Remember that you’re responsible for all the paperwork, so make sure to review them before submitting them.
Explain Unusual Items
HMRC will instantly target unusual items on your tax report, and depending on the severity, it might trigger an investigation. For example, if you’ve reported a considerable profit the preceding year and the current year saw a huge loss, then HMRC will require an explanation of such a significant change.
There might be reasonable explanations for such discrepancies. However, you need to explain them clearly to the officials. Providing a note alongside any anomalies in return will prevent an investigation. Getting a tax adviser to do such an explanation for you will be even more beneficial as they can articulate a response much better!
Stay Updated with Rules and Regulations
Another way of keeping the tax investigators at bay is to keep yourself updated with new tax rules and regulations that come to the fore. Many businesses often fail to do that and end up filing their taxes incorrectly, which results in a tax investigation. Hiring qualified chartered accountants & business advisors in Walsall, UK, will help you stay on top of the legal side of things.
These experts constantly stay in touch with industry standards are abreast of any rule changes that might affect your tax filings. You wouldn’t have to worry about such things as they will take care of everything so that you can focus on more critical areas of your business.
In a nutshell, it has become more and more essential to have a qualified tax adviser by your side who can help you navigate the complexities of tax returns. Refrain from hiring inexperienced professionals, especially if you have a complicated tax or finance structure.
If you’re on the lookout for well-versed accountants and the best personal tax advisors in the UK, you can’t look past IBISS & CO. They have firmly established themselves as one of the best chartered tax advisers & accountants service in Walsall. Their unparalleled skills and experience can help your business with various tax and accounting issues. Their team of experts will go above and beyond to help your business avoid an investigation from the HMRC.
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