Keep calm when under investigation

‘Accountant’s Clinic’

Private doctors have been involved in HMRC tax investigations along with many other businesses in the last few years. Susan Hutter summarises the main types of probe you are likely to be involved in and how these should be handled for the best outcome.

There are three main types of inquiry:

1. General – subdivided into:

 Full inquiry

This involves a comprehensive review of the underlying records supporting a particular tax return and can include a review of the private financial affairs of the taxpayer as well as the business.

 Aspect inquiry

These concentrate on one or more aspects of a tax return. These inquiries cover most of the casework carried out by HM Revenue and Customs (HMRC) inspectors and are the most relevant to doctors.