Do HMRC do random checks? HMRC carries out compliance checks on a proportion of returns to check their accuracy. Some checks will be completely random, while others will be made on businesses operating in ‘at risk’ sectors or where prior risk assessments have been conducted.
How likely are you to be investigated by HMRC? On average, tax audits can be expected every five years or so, while only a few per cent of income tax and corporation tax returns are investigated each year. But the frequency of tax audits and the likelihood of in-depth tax investigations increases if HMRC suspects that tax is being underpaid.
Can HMRC come to your house? The simple answer to this common question is, no – so please be assured. They can only take property owned by the company – no hired or rented means, nor property under your own name. If your company fails to pay its debts with HMRC, they will perform enforcement actions, to get the money they are owed.
How many years can HMRC go back for unpaid tax? How many years can HMRC go back into an investigation? Once an enquiry has been opened into your tax affairs, the HMRC have 4 years from the end of the tax year concerned to issue a discovery assessment.