2010 UK HMRC Form SA970-2025

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If your reported income and tax returns do not support your apparent lifestyle, HMRC may investigate. For example, owning luxury cars, properties, or taking frequent high-cost holidays while declaring a modest income can raise suspicion. Tip: Be honest and accurate in your tax reporting.
As a general rule, HMRC has one year to open a tax investigation, starting from the date the return is filed. The investigation can go back four years, although this is extended to six years where careless mistakes have been made, and 20 years if there is any indication of dishonesty.
Use a disclosure campaign Effectively manage and control the scope of HMRCs investigation. Minimise the risk of further questioning from HMRC. Limit the period to which HMRC can ask questions. Avoid criminal prosecution. Only pay the minimum penalty enforceable by the law (in some cases this is 0%).
HMRC will contact you by letter to tell you there is an overdue payment on your Simple Assessment tax bill. The letter will tell you: how to pay. if you cannot pay in full now, to call HMRC on 0300 322 7835.
The letter will mention self-assessment and HMRC will have calculated your tax and sent you the calculation for that tax year. This might show that you owe tax, or if you have paid too much tax, you are due a refund.

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However, there are some simple steps to take to try and avoid being investigated, such as: Providing truthful information. Proof checking your return once its complete. Declaring your income. Staying up to date with your business tax payments. Filing your tax returns on time.
If you do not respond to HMRC or refuse to pay what you owe, we may either: visit you at your home or business address to help us understand your circumstances so we can work with you to settle the tax you owe. use a debt collection agency to discuss settling your debt.