Stop the taxman visiting

For many consultants, there is a clear angst that HM Revenue and Customs may come calling with an unexpected tax bill or inquiry. Ian Tongue explores some common areas of risk and the steps that can be taken to minimise the risk of the taxman ringing your doorbell.

Phew! Thankfully, it is actually quite rare to have a representative from HM Revenue and Customs (HMRC) literally turn up at your door.

Taxman ringing front doorbellThat approach is mainly for on-the-spot record-keeping checks or if it thinks you have done something really bad.

The norm is to receive the brown envelope with HMRC saying that it is inquiring into your affairs. The natural reaction is to hit the panic button. But don’t.