HMRC Disputes

HMRC have now, and for some time, conducted focussed, specific investigations into particular “high risk” sectors within tightly defined geographical areas. HMRC will routinely publish their intended Taskforce targets, to encourage businesses with possible failings in those targeted sectors or areas to come forward voluntarily to disclose any tax problems.

Taskforces, in some part, go back to an earlier age when HMRC would police their local areas knowing who their traders were. The taskforce approach now has at its core HMRC’s strategy of tackling tax evasion using local knowledge and following detailed risk assessment to identify “potential offenders”.

Taskforce investigations typically cover all types of taxes whether income tax, corporation tax, VAT and employment taxes. The investigations are very much team-worked by HMRC Officers, able to call on any resources from within HMRC including the criminal investigations and prosecutions teams, the Fraud Investigation Service, the Contractual Disclosure of Fraud teams or Officers from the Local Compliance area.

As with any HMRC activity such an investigation will be stressful, time consuming and involve extensive scrutiny by HMRC of business and tax records.