Top Reasons to Stop Worrying About a Tax Audit

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Many businesses in the UK face routine tax audits from time to time. These tax investigations and audits can be quite stressful and complex, especially if the HMRC suspects inaccuracies in the tax returns.

Unless you're very sure of the next steps, you must take professional advice from reliable companies such as IBISS & CO. as soon as the investigation rolls out. While numerous triggers can lead to HMRC inspections, some of them are random inquiries.

Regardless of whether the HMRC found anything wrong or chose you for a random audit, there's no need to panic. In this situation, building a robust understanding of tax audits might help ease your fears. Let's find out why you need to stop worrying about tax audits.

But First, What Triggers Tax Inspections?

According to statistics, nearly 9% of tax inspections are triggered at random. However, most investigations are carried out when HMRC believes something doesn't match up.

Ignorance is no defence when it comes to tax-related mistakes. Firms and individuals must be extra careful when completing their returns while ensuring it is done on time. This way, HMRC has no reason to be concerned.

However, any unusual fluctuations in profits or turnover may ring alarm bells for the HMRC, which can trigger an aspect inquiry but not a full-blown investigation.

For instance, if your expenses were unusually high due to unforeseen repairs or other reasons, use the extra space on the tax return form to explain the anomalies.

Experts at IBISS & CO. suggest reviewing the return carefully to minimise errors. If you have left nothing out, you shouldn't have anything to worry about. Now let's get back to some reasons you need to stop worrying about tax audits, especially if you've got a reliable tax returns consulting team on board.

Chances of HMRC Audits are Very Low

For the average person, the chances of HMRC audits are about 1 in 343. Those that fall into the lower-income or middle-income range have relatively straightforward tax obligations. This further lowers the likelihood of tax audits.  

Tax Audits Don't Automatically Spell Trouble

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 While it's true that the HMRC can audit those they suspect are involved in something wrong, that's not always the case. In fact, the HMRC audits a portion of the taxpaying public every year. Sometimes you may be selected purely as a matter of chance.

If the information on the tax return doesn't match with data HMRC received from other sources, or they find something in your return, you climb higher on the list of people and companies awaiting audits. It has been noted that taxpayers with above-average incomes are more likely to be audited, as they have more complex returns, and the HMRC can collect more money from them.

IBISS & CO. Has Got Your Back

Sometimes tax investigations are rolled out when the HMRC requires additional documentation or clarifications. People in the UK often dread audit calls and emails from the HMRC and prefer to work with experienced chartered tax advisors who can help them with their tax needs.

If the audit is requested, gather all the information and allow IBISS & CO. to represent you.

Their professionals can help you learn your rights and guide you in the right direction when it comes to the deductions you qualify for, which you shouldn't miss just because you're afraid of tax audits.

The chartered accounting firm employs experienced tax advisers who can help find legal ways to reduce your tax bill with timely tax return filing at cost-effective rates. They can help you keep your records in good shape to help you enjoy some peace of mind, knowing all financials are complete and accurate.

Their self-assessment & tax returns consulting team in Walsall is also reachable via call or email for those looking to learn more about their services, such as inheritance tax planning, corporation tax, landlord self-assessment tax return, personal tax, non-resident landlord self-assessment, and more. Get in touch with them to find more information.