HMRC Enquiries:

Every year HMRC will open enquiries. They can ask you to prove one or two figures on your tax returns and if they are satisfied they close their enquiry. If they are not satisfied then they often open a full scope enquiry into your affairs. Where HMRC finds that the taxpayer has not properly disclosed information it can seek to impose penalties of up to 100 per cent of the tax due plus interest on the late payment of taxes arising from the enquiry.