Ensuring you're protected from unexpected events.
For a tax investigation to reach its conclusion the time it takes can vary, however it has been known for a tax investigation to take as long as 16 months.
Normally, the time limit for HMRC tax investigation is 4 years. However, this can go as far back as 6 years if they can see clear carelessness when submitting your tax return.
If you have filed your tax return on or before the deadline then HMRC has 12 months to notify you that it will be investigating you. However, if you have filed your tax return late, HMRC has 15 months from the date that you filed your return to launch their investigation.
If HMRC believe that you have been deliberately false in your tax returns then they can go back 20 years.
However, if they beleive that the errors you made in tax return have been innocent then they can go back 4 years.
Sometimes they are allowed to go back 6 years, they will do this if they think that you have been deliberately careless in your tax return.
Yes, in the UK you can face a maximum of 7 years imprisonment with a limitless fine for tax evasion.
Yes. Financial institutions such as banks have to make reports to HMRC about the interest paid on things like bank accounts, investments and savings.
They can use this information to make sure that the expenses on your return match with your electronic information.