Most clients we meet on a tax investigation are facing one for the first time. The letter has arrived, HMRC has asked for information or proposed an assessment, and the question is what to do in the next few weeks. HMRC tax investigations are usually the result of an error on a tax return, inconsistencies in information provided to HMRC, or random selection. They may also follow a tip-off, although HMRC will not disclose the reason for opening an enquiry.

At Vision Consulting we understand the pressure a tax investigation puts on people and businesses. We act for business owners, landlords and high net worth individuals on HMRC enquiries, voluntary disclosures and Code of Practice 9 cases. The investigations we take on are led personally by Ghulam Alahi FCA, Managing Director, and Zaman Khan FCCA, Senior Manager, who see the file through to settlement with the wider team supporting as the case requires.

For our existing clients we offer a fee protection scheme so that in the event that they are investigated they do not have to pay for the professional cost, which can expensive.

We were approached by an individual who had carried out a significant amount of property transactions over a number of years, growing rapidly through a buoyant market. Given the rapid growth the client focused all his energy on running the business.

This led to tax compliance requirements not being fulfilled and an investigation by HMRC. Before engaging with Vision Consulting, the investigation had been open for over 2 years with no end in sight.

We took over the investigation and worked closely with the client to address HMRC's queries, reaching a contract settlement in under 3 months.

HMRC enquiries take many forms. At one end is a compliance check on a single figure on a return. In the middle sits a fuller enquiry under Section 9A of the Taxes Management Act 1970, which opens up the return as a whole. Beyond that, HMRC's Fraud Investigation Service runs the more serious civil investigations under Code of Practice 8 (suspected tax avoidance) and Code of Practice 9 (suspected serious tax fraud), and reserves the right to pursue criminal investigation where it considers it warranted.

HMRC has wide formal information powers under Schedule 36 of the Finance Act 2008 and a long reach in time — four years routinely, six where it considers a return careless, twelve for offshore matters and up to twenty where it suspects deliberate behaviour. Most cases settle on a civil basis. The path the case takes from here is shaped largely by how the early correspondence is handled.

How the first few letters are handled can shape the whole case. HMRC accounts for: what is and isn't said, how quickly you respond, the level of detail offered without being asked. The wrong approach early on can have risks such as making a careless mistake look deliberate, broaden the scope of the enquiry beyond the original question, or rule out routes that would otherwise have been open.

Done properly, the same case tends to be resolved on better terms: lower penalties, narrower scope, faster close. Most people handling it themselves don't know what HMRC is actually looking for, and HMRC won't tell them.

Where there genuinely is an issue — undeclared rental profits, foreign income, an asset overlooked on an earlier return — coming forward usually works better than waiting for HMRC to find it. HMRC operates several voluntary disclosure routes, and the right one depends on the circumstances. We work with clients to determine which fits, agree the approach with you, and handle the disclosure from start to finish.

Cases come to us at different stages. Some clients call when the first HMRC letter arrives. Others have been handling the correspondence themselves and have hit a wall, or come from another adviser where the matter has stalled. We take the file on, work through what HMRC has and what they're likely to push for next, and agree the approach before responding.

The work is led personally by Ghulam Alahi FCA, Managing Director, and Zaman Khan FCCA, Senior Manager. Ghulam has worked on tax investigations for almost twenty years, including Code of Practice 9 and other fraud-related cases. Zaman has handled HMRC enquiries for more than a decade. The wider team supports as needed and are capable of providing well presented comprehensive explanations and information in an easy to interpret format HMRC will understand. Where a matter calls for legal input such as escalations, Tribunal work, or related civil and criminal exposure, we have an in-house legal adviser and established relationships with London law firms, and can introduce specialist counsel where the case warrants it. We take this work personally and truly strive to achieve favourable results for our clients.

Tax investigations can affect health, run for months or years, and pull attention away from the things that need it. We are comfortable dealing with the day-to-day handling of HMRC, and make an effort to make matters easier for our clients. Every case gets the same care, the same focus, and the same commitment to getting the best outcome we can.

First calls are usually short. If a letter from HMRC is in front of you, feel free to send a copy through ahead of the call so we can read it before we speak. Phone 020 8554 2135 or email info@visionconsulting.co.uk. Initial conversations are confidential and at no cost.