The average length of tax enquiries undertaken by HMRC’s local compliance teams into ordinary taxpayers has increased over the last year, from 2.5 months in 2012/13 to 3 months in 2013/14, according to data provided to PFP, the tax investigation insurance firm. The enquiries, even if they start as a basic enquiry, can lead to a full blown investigation, where HMRC looks in forensic detail through all of an individual’s records or company’s books.
PFP says that whilst the average length currently sits at 3 months, it is not unusual for a tax enquiry to take much longer. PFP also says more complex and high value cases are not handled by the local compliance teams and the length of these investigations can be much longer – sometimes even years. Kevin Igoe, managing director of PFP, comments: ‘Any increase in the length of time taken for HMRC to complete a tax enquiry will be a major concern for those being investigated. A 20% jump in the average time taken means a rise in levels of stress and cost to the potentially innocent individual.’
The average length of tax enquiries undertaken by HMRC’s local compliance teams into ordinary taxpayers has increased over the last year, from 2.5 months in 2012/13 to 3 months in 2013/14, according to data provided to PFP, the tax investigation insurance firm. The enquiries, even if they start as a basic enquiry, can lead to a full blown investigation, where HMRC looks in forensic detail through all of an individual’s records or company’s books.
PFP says that whilst the average length currently sits at 3 months, it is not unusual for a tax enquiry to take much longer. PFP also says more complex and high value cases are not handled by the local compliance teams and the length of these investigations can be much longer – sometimes even years. Kevin Igoe, managing director of PFP, comments: ‘Any increase in the length of time taken for HMRC to complete a tax enquiry will be a major concern for those being investigated. A 20% jump in the average time taken means a rise in levels of stress and cost to the potentially innocent individual.’
