{"id":4183,"date":"2020-07-01T14:35:35","date_gmt":"2020-07-01T13:35:35","guid":{"rendered":"http:\/\/my-brains.co.uk\/jackross\/?p=4183"},"modified":"2020-07-01T14:35:39","modified_gmt":"2020-07-01T13:35:39","slug":"hmrc-resumes-investigations-after-covid-19","status":"publish","type":"post","link":"https:\/\/my-brains.co.uk\/jackross\/hmrc-resumes-investigations-after-covid-19\/","title":{"rendered":"HMRC resumes investigations after COVID-19"},"content":{"rendered":"

What to expect from tax probes in 2020\/21<\/strong><\/span><\/h3>\n

After temporarily pausing tax investigations as COVID-19 business support measures rolled out earlier this year, HMRC has restarted probes into businesses and individuals\u2019 tax affairs.<\/p>\n

The Revenue has also started to direct its attention towards the misuse of coronavirus support schemes, such as the furlough scheme and the self-employed income support scheme.<\/p>\n

As of 29 May, HMRC said 1,868 people had reported their employers for fraudulently claiming money through the furlough scheme \u2013 more than double the number of reports it had received by 12 May. Since then, reports have passed 3,000.<\/p>\n

An amendment to Finance Bill 2020 will, if passed, allow HMRC to recover grants that claimants were not entitled to receive.<\/p>\n

To identify furlough fraud, HMRC checks whether staff appeared on real-time information reports before 19 March 2020.<\/p>\n

Meanwhile, self-employed workers who claimed support may be asked to confirm whether or not they meet the eligibility criteria.<\/p>\n

If it finds the recipient should not have received a grant, HMRC will apply a 100% tax charge to recover the amount claimed. In cases of deliberate non-compliance, claimants will have 30 days to own up to it before penalties are issued.<\/p>\n

As HMRC cracks down on more businesses, you might be concerned about what might happen if your tax affairs come under scrutiny in the next few months.<\/p>\n

Even if you know you have nothing to hide, the stress of an investigation is the last thing most businesses want to deal with under current circumstances.<\/p>\n

Investigations are much easier to manage if you know what to expect, however, and we\u2019re on hand to support you throughout.<\/p>\n

If, for whatever reason, your business becomes the subject of an HMRC investigation, here\u2019s what you need to know.<\/p>\n

What triggers an investigation?<\/strong><\/span><\/h3>\n

There are several triggers for HMRC investigations, some of which are beyond your control. Your business might be randomly selected, for example, or it might operate in a sector that\u2019s come under scrutiny.<\/p>\n

Others have more to do with a business\u2019s accounting practices \u2013 if your tax returns are frequently filed late, or contain major inconsistencies, HMRC may decide to investigate.<\/p>\n

What will they investigate?<\/strong><\/span><\/h3>\n

HMRC may look into any aspect of your tax affairs, including the tax you pay, your self-assessment tax return, business accounts, company tax return, PAYE records, or any VAT records.<\/p>\n

There are three main types of enquiry:<\/p>\n