Self Assessment Tax Return UK - 3 Steps to Avoid a HMRC Tax Investigation

In 2022 and 2023, I sincerely hope an HMRC Investigation is something none of my subscribers face. In today's video we're going into exactly how an HMRC investigation works, what prompts an HMRC enquiry and 3 simple steps that you can use to reduce your risk of facing an HMRC enquiry into your self assessment tax return UK.
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Watch the full Self-Assessment playlist:
• How Do I Prepare For a...
⏱️ Time Stamps:
0:47 - What exactly is an HMRC enquiry?
2:46 - What prompts an HMRC enquiry?
4:57 - 3 simple steps to reducing your risk of an HMRC enquiry.
With the impending implementation of HMRC's "making tax digital" changes, HMRC have more and more ways to check self assessment tax return UK and find potential discrepancies or errors on each return.
The Taxes Management Act 1970 gives HMRC the right to enquire into personal and trustee tax returns. This right applies to the original tax return, and to any subsequent amendment to the return made by the taxpayer and it applies in all cases.
The vast majority of enquiries begin because HMRC suspect that there is something wrong with your self assessment tax return UK, as detected by their advanced computer system and network. In other words, there is either something on the face of the return that gives cause for concern, or HMRC have information from other sources that conflicts with what is shown on the return.
Nudge letters are often used by HMRC to prompt taxpayers to recheck an entry, or the lack of an entry, on a self-assessment return in a particular area. Nudge letters are not an enquiry in itself, but if you don’t deal with the requests or information on a nudge letter, the chances are HMRC will open a formal enquiry into your tax return.
HMRC have an enquiry window of 12 months from the date of the return to open an official enquiry into your self assessment if they believe something is wrong.
🔴 3 Steps to reduce your risk of an enquiry.
1. Get it done early. You have just over 9 months to submit your self assessment tax return, giving you time to re-check anything that looks out of the ordinary.
2. Use the supplementary fields available on the self assessment tax return to give HMRC more details on aspects on your return which may appear out of the ordinary such as capital gains and property.
3. Be honest. The thought of reducing your tax bill can be very tempting, especially with certain large companies perhaps not paying the taxes they should be. However, we strongly advise you are honest with your self-assessment, this will ensure that even if you're selected for a random enquiry, you have confidence in your numbers.
We hope this video gives you an insight into how HMRC investigations work and takes you one step closer to knowing your numbers. Be sure to check out our full self assessment playlist and get prepared for the 31st January. Thanks for tuning in, make sure to like and subscribe for more free quality advice from real qualified accountants.
★☆★ OUR MISSION ★☆★
Me & my team are dedicated to helping and empowering YOU to 'Know Your Numbers' so you can make calculated and informed decisions in your business, company and personal finances towards your definition of success.
★☆★ OUR PHILOSOPHY ★☆★
If you take care of your numbers (finances), your numbers will take care of you, your family and those you value the most.
🔴 DISCLAIMER
Our videos are for general guidance, education and empowerment in helping you understand accounting, tax and your numbers. They in no way constitute specific advice to your specific circumstances. Me & my team would be delighted to help you with your specific queries or accounting requirements through a formal engagement.
#selfassessmenttaxreturn #selfassessment #taxreturn2022

[@paullewin8615]

It enlightens me to how intrusive our fiat governments are becoming. They don't go after the off shore big players, they go after the little self employed. It's easy money and so scarry. Haha.. the government has become so big and powerful!

[@nicholaswoods8000]

Very well said, your presentation is quite outstanding and easy to comprehend, there is a lot going on in the world now which will eventually affect the future either positively or negatively thereby causing an increase or decrease in the financial market, in order not to fall victim now is the time to start investing to secure your future I’m currently building my finance and increasing my portfolio in the mean time

[@DavidEvans-b5b]

Nice clear advise and straight to the point.Great video.

[@robtownley5384]

Very quick and useful information, well delivered

[@tonydCFO]

Thank you Rob

[@keithstewart511]

yes, helps me stay less worried and useful.

[@tonydCFO]

Good to know Keith. It's better to sleep well at night without worry!

[@charr007]

this gentleman is always on the spot,he knows what he speaks about!

[@tonydCFO]

Thank you Harry. We're delighted our videos are useful to you.

[@Crazyibbes]

Many thanks Tony for the great performance and the some fun on 4:36 & 4:40 :D :). all the best and Respect

[@tonydCFO]

Hi Crazy Ibbes thank you for your positive comment and support 😊 I'm really grateful that my content is useful and adds value to you.

[@tasospapanastasiou9274]

Well explained! Thank you

[@tonydCFO]

Hi Tasos thank you for your positive comment and support 😊 I'm really grateful that my content is useful and adds value to you.

[@warrenpeece1726]

"Enquiry?" Sounds so much more civilized than "audit!"

[@Wxys.500]

Excellent information and delivery, thank you.

[@tonydCFO]

You're welcome DMC.

[@archvaldor]

Really solid, professional video.

[@tonydCFO]

Thank you for positive comment and support.

[@martinmessiah7130]

In business for 40 years people often come to me for advice ,my advice is get advice from an account. Don’t put your energy into evade tax , Put your energy into making more money to pay the tax.

[@tonydCFO]

Hi Martin, thank you for comment. You are right, always focus on getting more clients/customers or at a higher price and your profits and tax will sort themselves out.

[@Crazyibbes]

💯✍🙂

[@Crazyibbes]

💯✍🙂

[@oman9492]

Always avoid till you get caught. They only ever give you a fine usually the same as you avoided so might as well chance it

[@MoroccanAnwar]

@@oman9492 badman lol

[@oneman9783]

Great subject

[@tonydCFO]

Thanks one man, and thank you for your support.

[@Gavbro0]

Excellent content already after 5 minutes watching this, I think your worth subscribing to!

[@tonydCFO]

Thank you Gavin and welcome to the channel.

[@pepe1353]

Thank you for the video! Hit the like button and definitely subscribe! clear and understandable explanation very well spent 10mins :)!

[@tonydCFO]

Thank you E P. We are launching our membership platform soon where you will get access to exclusive content that will really help you grow your business, save tax and maximise your wealth. It's free to join. aidhanfinancial.com/accounting-tax-academy-membership/

[@jamiewalker8772]

@@tonydCFO Brilliant video sir. One of my friends had had his coinbase account frozen. He has a letter from “serious crimes” stating that if he does nothing no charges shall be pressed. But if he wishes to pursue he will face the full extent of the law. It’s a fair investment but let’s be real. All paperwork long since lost. I’m quite certain he’s done nothing wrong except leave it in coinbase. Any suggestions would be extremely welcome and I’m quite sure handsomely rewarded. He’s on a serious downer I’m actually quite concerned. Thanks in advance

[@SavvyMoneyShow]

Liked and subscribed

[@tonydCFO]

Thank you Savvy Money. We're delighted our content is helping you.

[@SavvyMoneyShow]

@@tonydCFO there is a limited amount of information out their for uk tax law

[@SavvyMoneyShow]

I found hmrc experts had no idea about eis and seis and I actually knew more and was forced to open a Complaint which was upheld for them giving out wrong information on the subject

[@tonydCFO]

Hi Savvy Money, sorry to hear about your negative experience, which is not uncommon. HMRC are generally understaffed and with limited ability in their advisory sections. So one of our objectives is to plug this gap with our platform and content.

[@SavvyMoneyShow]

@@tonydCFO you are doing a great job luckily I learnt about seis and eis so knew they were mistaken and made a Complaint and got compensation for it

[@karananurag]

Hi I am not self employed, and fit into high income child benefit charge. i have the UTR but i am unable to proceed somehow as after filling in my details, I get a window that no tax is due. According to me, I shouldnt have applied for Child benefit as income has crossed 60K. Is there anything you can help with?

[@matthewadams1874]

There will be alot more inquirys by hmrc for all the subbys claiming for these self employed grants and none ov them av stopped working but still claimed the grants

[@anthonyheaton5798]

Do we have access to our tax accounts? I want to know whether people my grandson has worked for have actually paid over the money they deducted. They've given no documentation & are uncooperative.

[@irumkhan3381]

Hi is there a video about discovery assessment?

[@badabing8884]

Lots of Anti avoidance legislation now. There is also the GAAR, so not so straight forward that tax avoidance is legal.

[@gulab5414]

Hi Someone stole my UTR and then he filed tax return and he got the money now how much time it take to complete the investigation by hmrc and will I get my tax return back?

[@jeneelynconcepcion5717]

Hello good afternoon!My husband completed and submitted his self assessment tax return for High income tax charge child benefits via government gateways account.Does he need to wait the update from HMRC before he pay tax? Thank you

[@neil03152]

can't get video to run. any ideas?

[@michaelcampin1464]

Random Enquiry or Fishing Expedition are illegal

[@diegodestefano2896]

Soy de san Diego California y me llam0 Diego, y hace 4 meses que no me llegua el estimulo.

[@tonydCFO]

thank you Diego

[@mizterjones]

Is it the 31st of January back to April 6th? Or January to January?

[@afg100yearsback]

I know someone he is getting benefits and he runs a big business and he drives 2019 Land Rover as well as he bought half a million pound house in Milton Keynes

[@silowan197]

You know snitches get stitches tight?

[@dannyboy1779]

Why do they keep you hanging on the phone & when you eventually get an answer, they hang up or act like they can't hear you??? My taxes are in order but I keep getting threats of warrants being issued unless I press 1. on my phone??

[@tonydCFO]

Hi Danny, HMRC will always write to you, be sure to have a read into known HMRC scams to make sure no one is trying to do you out of your hard earned cash.

[@rosinamann19]

Oh my god this happened to me today 😡 This number 07506276806 and 020 3730 3998 London, England It’s a scam

[@RedForShort]

it's a scam. don't press any buttons. just hang up the phone. I've had loads of these.

[@haleemasajid2917]

@@rosinamann19 I also received same thing even though I am not working.even I was threatened by DVLA to submit car tax even I don’t own vehicle. It’s all scams. Be careful

[@balangeorge902]

I lost the national namber insurrection, and I want a copy, how can I get it urgently

[@marynarkw]

Hi, do you need to fill self assessment straight away (after stop being selg employed) or you have time for it as usual untill 31 January?

[@Crazyibbes]

Hello Piotr, as far as I understood, You still under the same scheme to declare but I believe all you need to do is to inform the HMRC wether you call them, or you submit it on your account on the Gov website that you are not self employed since that date, and follow up with your new Job if they do pay tax on your behalf or you must declare it yourself, Or when you declare you confirm all changes during the year. Correct me please :)

[@ShoelessNomadThailand]

I got made redundant at the end of Oct 2020. I have not worked since and will not work before the end of this tax year. So I believe I've over paid my tax. How do I claim this back?

[@kevinshanahan6064]

You can use form R40. You can do this online. The R40 did allow typically pensioners to make tax reclaims during the tax year. HMRC downplayed their availability but they are still available to use, as in your case for a one-off claim. What they don’t like, hence downplaying is several claims within the tax year. Good luck.

[@ShoelessNomadThailand]

@@kevinshanahan6064 Thanks for sharing your knowledge and very much appreciate. Stay safe

[@kevinshanahan6064]

@@ShoelessNomadThailand Thanks Tom, much appreciated. Please be aware if you earn under £1,000 as self employed before the end of this tax year, it is not taxed under the de-minimis. So if you can find a bit of casual as say ,“TB Solutions” this tax year, as a sole trader, go for it.

[@ShoelessNomadThailand]

@@kevinshanahan6064 Thank you so much for the information. I never knew that about 1000 pound. Basically because of Covit at 60 last March furlough. I had been working with Toshiba for 8 years. So at the end Oct 2020 I took Voluntary Redundancy to save a young man's job. I have a 3year old I care for her in the day and wife works. I looked at my P45 and thought that is not right. So I filled R40 online. Thanks again you should start your own channel. Cheers

[@carolinecollett956]

Everyone is after money especially since this pandemic any way possible

[@kk-zb6ue]

Hi , I had to self isolate in February for ten days after being contacted by NHS track and trace , I lost out on £1500 , can I claim the 4th grant ?

[@Serel25]

Why you would do that is beyond me 🤦🏻‍♀️ track and trace? You seriously downloaded that ? Some people ask for punishment 😑

[@Richyplayz999]

I work for HMRC. We certainly don't have powerful computers or system 😀

[@tonydCFO]

Hi Super Mario Gaming, thank you for your insight and comment ☺️

[@garyharvey7905]

Hi. My tax return start's from 30th June to 1st July. Do I enter this on the online application form? My accountant passed away recently so I'll do my return myself

[@tonydCFO]

Hi Gary, this is something can be discussed with you on a discovery call. You can book one here >>> aidhanfinancial.com/book-a-discovery-call

[@therealworldco]

I am 17 years old and am currently running an e-commerce business. I have made around £6000 in just over a couple of months. Everything is registered under my parents names as you have to be over 17 to register as self employed, and even sell things on eBay. I am unsure whether there is a way I could possibly register my business to my own name. I have not notified the HMRC and I am worried they will catch on and I’ll have to pay the 30-100% tax fine. What should I do?

[@martinmessiah7130]

You have an annual tax allowance, you are due to pay tax over the allowance. If you are serious about business you should see an accountant . If you do thing’s properly your business will grow. In law the business belongs to your parents and they are due to pay the tax if any is due .

[@MuhammadKashifHusain]

I have a UK company and I need to file taxes. Do you provide consulting services, bookkeeping services as well so that I could use your help.

[@tonydCFO]

Hi Muhammad, yes we do. You can book a call here to find out more and talk to a qualified accountant aidhanfinancial.com/book-a-discovery-call/

[@silowan197]

Have you sorted it yet?

[@totoosav9074]

Thanks for the video. I have a problem with my Tax Overview. It says I've over paid £900. But my SA302 correctly says I need to pay £2400. What can I do to rectify this. P.s. I need them to match when applying for a mortgage.

[@bf5733]

thanks for this, can i ask where and when you would declare a business loan ? i am self employed and a sole trader. My repayments start in April and I am guessing I will not list the as an expense if I do not count the loan as income. Any help would be really appreciated .

[@tonydCFO]

Hi B F, the interest element of the loan should be a tax-deductible expense. The actual loan amount is not classified as income, it is classed as a liability on your balance sheet.

[@wallyb7286]

Does everyone need to file this tax return , even if I earn less than 2k per month .?

[@SteveSandersonArt]

yes

[@macman6421]

If you are in the UK the answer is No.

[@SteveSandersonArt]

incorrect

[@SteveSandersonArt]

If you are self employed in the uk, you need to submit a tax return. If you earn under the threshold you wont pay tax. If you are earning 2k a month, you'll be paying tax like everybody else 🙂

[@timbaker577]

No everyone does not, if you are self employed you will need to.

[@gunnerlangy]

The letter aitch does not begin with a letter "H".

[@tonydCFO]

Thank you John

[@Cristian-rz2qq]

I've received a penalty from HMRC for 2018-2019. I forgot to fill the tax that year and I don't know what to do. Do I still need to send them the form? I'd really appreciate some help, please! I've already joined your community and hit the subscribe button. Many thanks, Aidhan!

[@tonydCFO]

Hi Cristian, we strongly suggest you complete a 18-19 return. As a minimum, contact HMRC www.gov.uk/government/organisations/hm-revenue-customs/contact/self-assessment and let them know you will be submitting it shortly. If possible and applicable, make a payment on account.

[@Cristian-rz2qq]

@@tonydCFO Thank you so much!

[@Tanya-is-Anglii]

hello thank you very much very good video. I work full time. I have a small KZbin channel. For 1 year I have an income on KZbin of 500 pounds. Should I not pay taxes on KZbin? thank you very much for your reply. I live in England

[@azsmzs6555]

How to contact you if I need some advice?

[@tonydCFO]

Hi AZ, you can go to our website a book a call: aidhanfinancial.com/

[@marcwolverson1186]

I’ll take HMRC any day over the IRS!

[@tonydCFO]

Hi Marc, you make a fair point. Some other tax authorities and jurisdictions are far more onerous than HMRC!

[@callum3651]

Sooooo, the rest of you are looking for ways to “avoid” tax too

[@rammingspeed5217]

Avoid.. Yes.. Evade.. No.. Lol

[@markcyphus3292]

Why the awful background music?

[@Grib322]

Это реплика Артура Пирожкова?

[@tonydCFO]

?

[@jonathancurley6835]

Do you crypto tax.

[@tonydCFO]

Hi Jonathan thank you for your comment and support 😊. As a first stop you can go watch a course we have done on this subject >>> accountingtaxacademy.com/courses/

[@albadecca1505]

None of this applies to VAT, or Customs and Excise duties. Compliance checks are NOT enquiries and there are NO enquiry windows. Since there are no enquiries, nothing is opened or closed and closure notices do not exist. This is important. Many accountants are not aware of this fundamental difference and attempt to apply TMA provisions to VAT and Customs and Excise checks. This won't work and is usually counterproductive. Make sure you seek advice from a suitably qualified and experienced adviser.

[@yvonfem]

If youre rich you dont have to worry youre tax avoidance specialist will make sure you dont pay nothing .leave that to the working class and middle class to pay it for you

[@davidstirling7992]

Don’t give them your money! It only encourages them!

[@bishboshs]

An*... An HMRC investigation.

[@tonydCFO]

Thank you Josh

[@DP-bo4yw]

Nice clear advise and straight to the point.Great video.

[@tonydCFO]

Thank you D P