First of all don’t panic. In most cases enquiry letters are designed to focus on a specific area that HMRC are aware of generally and which has led to under declared tax previously. This may not even apply to you.
Secondly, check the date, we increasingly see enquiries raised outside of the relevant time limit.
Thirdly, don’t provide more information to HMRC than is necessary to answer the query. We often are asked to help with enquiries when they progress to a second letter, the second letter arises as too much information was provided in the first.
In one recent case, a simple question about travelling expenses led to a three page follow up letter, as the sole trader sent HMRC his whole cashbook in reply.
Finally, think about taking tax advice. Advisors have not only a good knowledge of the tax rules but also have invaluable experience of dealing with HMRC enquiries which can ultimately save you massively in terms and cash and time!
You can also take out annual cover, for a modest premium, to ensure that any professional fees incurred in connection with HMRC enquiries are paid for you.
For more information please contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org