How do you tell your clients to stop procrastinating and deal with their tax investigation?

There may be similarities to another case, but individual personalities tend to make the details of each one unique. But the process – the starting point, the middle and the end – should be well known.

There are the personalities of the taxpayer, you (as their trusted adviser) and not forgetting HMRC. The details of the number of years, the amounts etc. need to be established but without the “red mist” descending or the thought of “why me?”.

Your relationship with your client

As an adviser, you may be slightly detached from some of the emotion attached to a tax investigation. After all, HMRC are likely to ask some pretty direct questions of your client in their attempt to get answers to their far-reaching questions. A tax investigation is invasive. It's upsetting.

Your client, the taxpayer

As the taxpayer under investigation, emotions can come in waves time and time again in different strengths. Waves of anger. Waves of despair. Seldom waves of joy and happiness!

It's not surprising then that a client may put off answering HMRC’s questions creating delays and putting you on the back foot. The mere sight of HMRC’s logo or the brown envelope (or might I even suggest your own letter) can fill your client with dread. Avoiding a complete answer or volunteering a wider explanation to put matters into context is the furthest thing on your client’s minds.

The relationship with HMRC

Depending on the circumstances, the relationship with HMRC may be strained from the outset. It can start with a badly phrased letter or phone call from HMRC. Nothing vindictive was intended but that’s not the way it has come across. Blood pressures rise at the flick of a switch.

Of all your clients you may be thinking why this client and why now? Talk about bad timing. You may be concerned that your client may simply not be able to cope with a tax investigation on top of everything else.

How to handle the tax investigation itself

I suggest we need to take away the heat and the emotion. Answer every question in full (and the follow-on question if it’s obvious). Talk to your client frankly and openly about what the investigation will entail. And to some extent, detach yourself from it.

Take control and get ahead with the questioning. Ask the questions you know will be coming down the track in the coming months rather than playing “postal ping pong” and answering HMRC’s questions as and when they are asked. Map out a strategy but react to any changes in stance by HMRC.

Having a go (to earn more fees) or going the extra mile for a good client is not always the best policy. Consider allowing a third party to take control of a tax investigation that is even more detached than you are and work with both you and the client in responding to HMRC. Clearly the goal is to keep your client on board and obtain the best resolution possible for your client. But how can you do that if you are too close to the client, or you are not used to handling tax investigations on a regular day to day basis?

The last thing you want is to lose the bookkeeping, preparation of the annual accounts, or the tax work, which have all been a source of good, regular income so far.

How can I help?

I’ve dealt with thousands of taxpayers, tax investigations and HMRC throughout my long career. It's all that I do.

With that experience, I often can get a better outcome than either the client or the accountant can get.

I’m not a threat. I am not here to steal your clients - I don’t do accounts or tax returns, only tax investigations.

I can position myself between HMRC and the client and work with you, the accountant and the client to protect long standing relationships.

My focus is solely on getting the best outcome for the client.

I offer a free, initial, face to face consultation with you and your client which can take up to two hours. It can take that time for me to get to anything like the start of a response to HMRC. I am “good value” compared to the larger firms!

I can support your clients through every step of an investigation and be there to ease their fears, stress and worry by assisting with:

• Responding to HMRC’s initial letters and calls.
• Conducting meetings with HMRC.
• A second opinion.
• Negotiating a Settlement if the claim cannot be supported.

If any of your client’s are facing questions or a tax investigation, then give me a call on 07979 313 010 or send me an email.

Does your client need to make a Disclosure?

What do they need to admit to? How do they do it? What do they say?

You may be swimming against the tide. Your client may be thinking or even seek to challenge whose side you’re on. Theirs of course. But it may not feel like that.

Help is at hand

Sometimes you just need to talk to someone in the know. Don’t forget I offer the first 2 hours of my time for free.

Take advantage and give Paul Malin a call on 07979 313 010.