ongoing investigation

[patodan]

I am currently in an on going tax investigation because of bad accounting from my accountant who wasn't doing the books properly for the vat, having initially being self employed then setting up as a limited company the bank said i had to stand guarantor for the business and since setting up the investigation has started I have been issued with a bill and set with an unreasonable deadline, and have received subsequent threats from the tax office that they will take there investigation further by going back over a longer period of time and multiplying the current bill by the number of years, is this legal? and if so is there anyway I can contest this?

[scottie2]

we would need to know much more about the basis/nature of the bill you have been sent by HMRC, before we can comment definitively on whether HMRC has acted legally or not. It does sound as if you have no professional advisor skilled in investigations to handle the enquiry and deal with HMRC's unreasonable deadlines. I would recommend that you seek professional assistance before matters progress further.

HMRC has to demonstrate concusively that the issues they have uncovered, firstly, give rise to a tax loss. Secondly, they have to be able to show that these tax irregularities can be traced back a number of years-ie all things being equal, if the problem exists in one year, it is likely to be found in all years. This is standard HMRC practice. I would suggest that you consult with a tax investigation specialist who will be able to offer advice once the full facts are known. If you need further help, you can get in touch with me. Regards manoj.anand@wlhtax.co.uk