HM Revenue & Customs are now increasingly raising “aspect” enquiries into Corporation Tax and Income Tax returns. This means that they will query one item or a small group of items in the accounts rather than starting a general tax enquiry into everything. In theory this should simplify and shorten the way that enquiries are dealt with. However, it remains to be seen if this will prove to be the case.

There are also an increasing number of cases where HMRC will contact the taxpayer or company directly to intimate that they are starting an enquiry. Previously we, as your agent, were always informed at the outset. Therefore it is important to let us know if HMRC do contact you directly – this could be in the form of a letter or a phone call. You may also wish to inform HMRC (politely) that your agent deals with all your tax affairs and suggest that they contact us with any queries.

Another new type of check is a Business Records Check. This is a pilot scheme running until July which will mainly focus on new businesses and will examine the types of records they are keeping. The main target of these checks is businesses operating predominantly with cash. Again, notice might only be given to the business itself and not to us as your agent so it is important to notify us if you receive any correspondence about such an enquiry.