Tax audit is an important tax administration tool aimed at ensuring that taxpayers pay tax and file returns in accordance with the law. In the UK, tax audits are conducted by the Inland Revenue Department ("IRD"), targeting different circumstances and industries. Moreover, IRD may conduct selective audits, i.e. taxpayers are randomly selected for audit without specific reasons.
Case one:
The customer received a checking email from the IRS because the refund was too large.
Cause: The client filed a high tax return, which attracted the attention of the Inland Revenue Department as this anomaly may involve tax fraud or misstatement.
Successful cooperation with IRD in handling tax refund: The company cooperated with the IRD in the examination, provided relevant financial documents and information, and finally successfully handled the tax refund.
Case two:
The incorrect use of a low tax return resulted in an investigation and a request for back taxes.
During a tax audit, our company (Green Circle) discovered that a client had previously filed a return using a low tax rate by mistake, resulting in a back tax payment.
During the audit process, Green Circle's accountants communicated with HMRC on several occasions and were able to save the seller over £20,000 in tax. In view of the large amount of tax, the account was activated and the seller was able to pay the tax in installments. The final audit case was perfectly closed.
Conclusion
Enterprises are advised to seek professional tax agents for tax returns, as tax audits are time-consuming and costly, so don't be tempted to take the cheapest option. Once a store has been audited, it will be subject to compliance monitoring by the Inland Revenue Department for the next two years at the most.
Before applying for a tax refund, it is advisable to consider whether you have filed a tax return before. The amount of tax refund should not be too large as it may easily lead to an audit. Actively cooperate with the IRD by providing true and accurate financial information so that the problem can be solved as soon as possible. Avoid unnecessary troubles and losses that may affect the normal operation of your business.
If you have encountered UK tax audit, please feel free to consult Green Circle.
EN 
ZH_TW 
ZH