Tax consultant advice
Receiving a letter from the higher powers in the world of taxes is a terrifying moment. Why are your taxes being audited? More often than not, it is just the government checking up on something you filed, or asking for a clarification on something. All you need to do is send back what they requested. However, this is not always the case.
Clarification of Finances
A letter from the HMRC is nothing to worry about. If you keep a level head and fully read through the letter, you’ll see the revenue service just needs some more clarification. You can either take care of this yourself, or hire someone to represent you. This is the smartest choice because you can never be sure what exactly they need your financial reasons for, but your representative will take care of that for you.
A mistake in Your Refund
Companies love to claim that they will get you the largest tax refund check. While they may be able to get you a plethora of money through this refund, you have to be sure that you are legally due all this money. Sometimes these tax representatives will make a mistake while trying to get you a large refund check, and this is when you might be put in a bad situation where you get your taxes audited.
Fall or Rise of Income
Another way a red flag will be sent to the HMRC is if your income rises or falls drastically. This is usually an indication of incorrect filing. However, sometimes your income really did fall or rise that rapidly in a single year. Then, even if you do get a letter from the HMRC, all you would need to do is show the proper documentation and pay stubs to indicate that there was nothing wrong with the filing process.
Misfiling or Fraud
The main reason for hmrc tax investigations is that someone misfiled their taxes and still owes money. The HMRC does not want to take all your money, just what the government is legally owed. If you do not owe any money, then you do not have to worry about an audit. For all tax inquiries, you just need to provide the correct information to back up your claims, thus negating any auditing.
Avoiding getting audited can be as simple as hiring a tax consultant. While there is nothing wrong with filing your taxes on your own, you will be sure to get the most back by using a tax consultant. Also, if the occasion should arise where the consultant made a mistake and you are being audited, it is necessary to provide yourself with proper representation to avoid any extra fees.
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