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HMRC is increasing tax investigations
Newsletter issue – March 2026
HMRC is intensifying checks on individuals and small businesses. Many investigations begin because of avoidable mistakes that trigger automated red flags. Here are six common mistakes that can trigger an HMRC investigation:
- Living beyond your declared means-if your lifestyle (cars, holidays, property) doesn't match your reported income, HMRC's data-matching systems may flag you. They compare bank data, land registry records, and even social media activity.
- Running a cash-heavy business-businesses like restaurants, salons, and trades are considered higher risk. Poor record-keeping or unbanked cash can raise suspicion.
- Late or incorrect tax filings-missing deadlines or frequently amending returns suggests disorganisation or possible avoidance.Repeated issues put you firmly on HMRC's radar.
- Mixing personal and business finances-sole traders often fall into this trap. It makes audits harder and can look suspicious. A separate business bank account is strongly recommended.
- Unrealistic or excessive expense claims-HMRC algorithms flag unusually high expenses, especially for travel, meals, or home-office use. Claims must be wholly and exclusively for business.
- Sudden or unexplained changes in income-sharp drops in turnover or profit without a clear reason can prompt scrutiny. HMRC expects documented explanations (e.g. losing a major client).
Good record-keeping and accurate reporting are essential. If you are unsure, please get in touch to discuss your situation to avoid unnecessary stress and costs.
Fees for non-recurrent services would be based on time involved and would be agreed before we start work on given task.
- Accounts and Taxation
- Accounts prepared on time and presented to you at your premises
- Income tax calculations and projections
- Annual superannuation certificates for Partners
- Practice manager training about bookkeeping
- 2 - 4 meetings in a year at your premises
- Personal expenses
- Payroll
- SD55 for practice staff
- Installation and training in respect of practice computerised accounting system
- Unlimited telephone and email support for adhoc queries
Non - recurrent Services
•VAT advice •Capital gains tax planning •Partnership agreements •Surgeries finances •Pension planning •Budget and cashflow planning •Inheritance Tax planning
Recurrent Annual Services based on fixed fee:
- Accounts and Taxation
- Accounts prepared on time and presented to you at your premises
- Income tax calculations for Principles and Associates
- Practice manager training about bookkeeping
- 2-4 meetings in a year at your premises
- Personal expenses
- Payroll
- SD55 for practice staff
- Installation and training in respect of practice computerised accounting system
- Unlimited telephone and email support for adhoc queries
Non - recurrent Services
- VAT advice
- Capital gains tax planning
- Partnership agreements
- Surgeries finances
- Pension planning
- Budget and cashflow planning
- Inheritance Tax planning
Fees for non-recurrent services would be based on time involved and would be agreed before we start work on given task.
Our specialist team provides a wide range of accounting and business services to General Practice.
Recurrent Annual Services based on fixed fee:
Fees for non-recurrent services would be based on time involved and would be agreed before we start work on given task.
Recurrent Annual Services based on fixed fee:
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