HMRC has a big challenge making sure that the largest businesses in the UK pay the right amount of tax. The size and complexity of these companies can cause lots of issues. It also means any enquiry or investigation can last a long time. As one of the top providers of help with tax enquiries and investigations Camden has, we want to provide a little more advice on what happens here.
What does HMRC do?
Because of the nature of large companies, HMRC is typically investigating around half of them at any time. This can be around 1,000 different businesses. It is an ongoing battle with cases closing and opening on a daily basis.
The big challenge is that these enterprises have complex organisations and tax requirements. As a result there may be enquiries into several things for multiple years at any given moment. It can make ensuring that they pay the right amount of tax at the right time very tricky.
How long do investigations take?
One of the most important questions businesses have here is how long they will be under investigation. While the time can vary depending on each case and the level of risk, there are some notable averages. For example in 2019-2020 an enquiry would reach settlement within 17 months on average. This includes cases that had to go all the way to litigation. In the same period, decisions on risks could be reached in 18 months on average.
Many large businesses will actually work with one of HMRC’s Customer Compliance Managers. There are around 170 of them. Their job is to work specifically with these companies to manage their tax compliance. They are hands on to account for how significant the risk is, especially when it comes to these enterprises not paying the correct amount of tax.
Need help with tax enquiries and investigations in Camden?
At Brian G. Lonis & Co we have a lot of experience in this area. While only a relatively small number of businesses are large enough to have to deal with CCMs, smaller companies may still find they have enquiries and investigations to deal with. We can help them if they are unsure about anything.
So, when it comes to tax enquiries and investigations, Camden has nobody better to work with. Speak to us today and we will find out exactly what we can do to assist you.