What It Means and How Atex Business Solutions Can Help

What Is an HMRC Inspection?

An HMRC inspection (also called a compliance check) is when HMRC looks at your tax to make sure it is correct.

This can include your Self-Assessment, VAT, CIS, PAYE, Corporation Tax, or your business records. Some checks are quick. Others are more detailed. HMRC may check one tax year or several. Why Might HMRC Inspect You?

HMRC can open an inspection for several reasons, including:

• Missing or late tax returns
• Big changes in your income or expenses compared to previous years
• Information from banks or other companies that doesn’t match your tax return
• Industry-level checks, e.g. construction, couriers, hospitality
• Random checks (yes - HMRC sometimes pick people at random)

Being inspected does not automatically mean you have done anything wrong.

What Happens During an HMRC Inspection?

If HMRC decides to check your tax, you will normally receive a letter explaining:

• What tax year or period they are looking at
• What information they want
• When you must reply

HMRC may ask for things like:

• Bank statements
• Invoices and receipts
• Bookkeeping records
• Mileage logs
• PAYE, CIS or VAT records

HMRC may also ask to meet you, your accountant, or visit your business.

Your Legal Responsibilities

By law, you must:

• Reply to HMRC on time
• Tell the truth and provide accurate information
• Keep good records (normally 5–6 years depending on the tax)
• Pay any extra tax due, if HMRC proves something was missing

Failing to co-operate can lead to:

• Penalties
• Interest
• A longer investigation

Atex Business Solutions will help you stay compliant at every stage.


Your Rights as a Taxpayer

You also have important rights:

• The right to be represented - you can ask Atex to deal with HMRC for you
• The right to ask HMRC to explain why they opened the inspection
• The right to ask for more time to reply (if reasonable)
• The right to question HMRC’s findings
• The right to appeal if you disagree with HMRC’s decision

You are not expected to understand tax law - That’s our job.


When Can You Appeal an HMRC Decision?

You can appeal if you believe HMRC is:

• Wrong about your tax
• Misunderstanding your records
• Miscalculating figures
• Charging a penalty that is unfair
• Ignoring reasonable excuses (e.g. illness, bereavement, no access to records)

An appeal normally has to be made within 30 days of HMRC’s decision letter.

How Atex Business Solutions Can Help You

When you contact us about an inspection, we will:

1. Review the HMRC Letter - We explain exactly what HMRC wants and the deadlines.
2. Prepare and organise your records - If you do not have everything, we help you rebuild the missing information.
3. Assess the case
   
   We check:
   • If HMRC’s request is reasonable
   • If their concerns are valid
   • If there is a good basis for appeal
   • Whether any penalties can be reduced or removed
4. Deal with HMRC on your behalf
   
   We contact HMRC directly so you don’t have to.
   We provide explanations, calculations, and supporting evidence.
5. Challenge incorrect decisions
   
   If HMRC are wrong, we will formally dispute their findings.
   
   This can include:
   • Filing an appeal
   • Asking for a review by a different HMRC officer
   • Escalating the case to the Tax Tribunal (only if needed)
   Our goal is simple: protect you, reduce penalties, and bring the case to a fast and fair conclusion.

How to Avoid Future Inspections

Atex helps you stay compliant by:

• Keeping your tax returns up to date
• Managing VAT, PAYE, CIS and Company Accounts correctly
• Ensuring your bookkeeping is accurate
• Giving you clear advice in plain English
• Using HMRC-recognised software like Xero