The four stages any entrepreneur goes through   

The four stages any entrepreneur goes through   

Running a business is not something easy to do and while some people manage to succeed although they do not have a lot of experience, others may fail even if they are More »

Steps to starting a small business

Steps to starting a small business

If you are interested in setting up your own business, then there are a few important steps to follow in the process. Because the business world is highly competitive, it is more More »

Keeping your social media fans engaged – how to attract new followers

Keeping your social media fans engaged – how to attract new followers

Considering that social media marketing is more popular than ever and can have a very important influence on the success of a company, managers will need to always be careful with their More »

 

Tips for getting through the tax investigation experience

For some business owners, it is a real nightmare to come home and find an official notice on their doorstep. The truth is that taxpayers have good reasons to be terrified by the envelope imprinted with the initials “HMRC”. A tax investigation from the HM Revenue & Customs is uncomfortable at the very least. All your financial affairs are checked to see if your tax returns are accurate. Unpleasant as they may be, tax investigations are a common reality of business life. Instead of panicking, you should try to calm yourself. A check is not necessarily synonymous with bad news. The truth is that very few investigations result in custodial sentences. Be thorough and prepare yourself for the upcoming investigation.

Stop feeling upset

While it is essential to act quickly, you should not let your violent emotions overcome you. Even if a check is a serious deal, you should make efforts to keep calm. If you prepare yourself mentally for the worst, then only bad things will come your way. What you should be doing is finding an adviser with experience in such matters. He will help you get your records together and provide advice whenever you need it.

Treat enquiries seriously

There are two main types of tax inquiries, namely aspect and full inquiries. Aspect inquiries focus more on the information you have provided about, while full inquiries (as the name suggests) are wide ranging. This means that they inspect every aspect of the return of your contribution. Even though you may feel uneasy about the process, it is important to provide complete information. Helping the tax inspector reach a positive conclusion is to your benefit.

Keep in mind penalties

Co-operation is of the utmost importance. Surprising or not, penalties that you have to pay are determined by your behaviour. Therefore, if you do a foolish thing such as destroy evident or withstand information, things can lead to severe penalties. What you should not do is give the inspector reason to apply penalties. Be compliant for the time that the inspector is present.

Talk to the HM Revenue & Customs

With a good financial adviser on your side, you can get in touch with the HMRC. Maybe you can reach an agreement. Just keep in mind that they can misinterpret something, and not to your advantage. As a citizen, you have the right to ask question and demand clarifications. The point is that the HM Revenue & Customs are not always right and you should not let them intimidate you.