Your Go-To Tax Investigation Service
Few things cause more stress than receiving a letter from HMRC announcing a tax investigation. Whether it’s a random check or a targeted review, it can disrupt your business, consume your time, and lead to costly penalties if not managed correctly.
At Pearl Lemon Tax, we handle tax investigations with precision, professionalism, and calm. Our team guides you through every stage, responding to HMRC, gathering evidence, negotiating settlements, and preventing future issues. You stay compliant and confident while we handle the pressure.
Schedule a consultation today to discuss your situation confidentially with one of our tax specialists.
Our Services
Our tax investigation services cover every scenario, from routine compliance checks to complex fraud enquiries. Each service focuses on clarity, control, and resolution, protecting your business and reputation throughout the process.
HMRC Enquiry Management
When HMRC opens an enquiry into your accounts or returns, early action is vital. Many taxpayers make mistakes by providing incomplete information or responding too late.
We manage the entire enquiry process, ensuring nothing is missed or mishandled.
Our services include:
- Reviewing HMRC correspondence and identifying the scope of the enquiry.
- Preparing structured, compliant responses with supporting evidence.
- Acting as your representative in all communications with HMRC.
- Monitoring progress and ensuring deadlines are met.
With our team managing the process, you can focus on running your business while we handle the details.
Self-Assessment and Personal Tax Investigations
Individuals are increasingly targeted for tax reviews as HMRC expands digital monitoring. Even a small reporting error can trigger a full review of your finances.
We represent private clients in all personal tax investigations.
Our support includes:
- Reviewing Self-Assessment returns for inconsistencies or risk indicators.
- Gathering income and asset documentation for HMRC analysis.
- Responding to queries on foreign income, property, or capital gains.
- Negotiating settlements and time-to-pay arrangements if needed.
You’ll have a professional team ensuring your position is clearly and accurately presented.
Business and Corporation Tax Investigations
Corporate investigations often start with data mismatches or VAT discrepancies. They can quickly extend into payroll, expenses, and director accounts.
We support limited companies and partnerships through every stage of a corporate investigation.
We handle:
- Reviewing accounting records and corporation tax computations.
- Identifying errors or omissions before HMRC does.
- Preparing reconciliations and explanations for unusual transactions.
- Coordinating with auditors or bookkeepers to align reporting.
Our structured approach helps you resolve the issue faster and protect business continuity.
VAT Investigations and Inspections
VAT is one of the most common triggers for HMRC investigations, especially in industries with complex supply chains or mixed-use properties.
We help you prepare for and manage VAT audits and compliance checks.
Our tax investigation services cover:
- Reviewing VAT returns and reconciliations before inspection.
- Advising on partial exemption, input tax recovery, and zero-rating issues.
- Attending HMRC meetings or site visits on your behalf.
- Drafting responses to VAT assessments and penalties.
By ensuring accuracy and evidence in your VAT records, we reduce both exposure and stress during an inspection.
Code of Practice 9 (COP9) and Fraud Investigations
If HMRC suspects deliberate tax fraud, it may open a COP9 investigation under the Contractual Disclosure Facility (CDF). This is serious but manageable with the right guidance.
We provide complete representation for COP9 cases.
Our approach includes:
- Reviewing HMRC allegations and evidence thoroughly.
- Preparing full disclosure reports to secure immunity from prosecution.
- Negotiating fair settlements and penalty mitigation.
- Managing communication to protect your rights and reputation.
With professional representation, even the most complex investigations can be resolved effectively and confidentially.
Code of Practice 8 (COP8) and Complex Tax Disputes
COP8 cases involve tax avoidance schemes or large-scale irregularities. These investigations can last months or even years without proper management.
We specialise in resolving high-value and technical COP8 matters.
Our work covers:
- Analysing the structure of disputed arrangements.
- Preparing factual and technical explanations for HMRC.
- Engaging in settlement discussions to close the enquiry efficiently.
- Coordinating with legal advisers where litigation risk exists.
Our goal is always to reach a fair and final resolution that limits financial and reputational damage.
Voluntary Disclosure and Settlement
If you know there’s an error in your tax affairs, a voluntary disclosure can resolve the issue before HMRC discovers it. Properly managed, it also reduces penalties.
We manage voluntary disclosure submissions from start to finish.
We assist with:
- Reviewing historical returns and identifying irregularities.
- Calculating underpaid tax, interest, and potential penalties.
- Preparing disclosure reports and negotiation letters.
- Liaising with HMRC to finalise settlements.
Handled promptly, voluntary disclosure can close the matter cleanly and demonstrate good faith.
Tax Investigation Prevention and Monitoring
Once an investigation ends, preventing future ones becomes the next priority. HMRC often revisits businesses with inconsistent reporting or late filings.
We provide ongoing compliance monitoring to keep your records in order.
Our prevention service includes:
- Regular reviews of tax returns and filings.
- Monitoring changes in legislation that may affect your position.
- Providing training and process reviews for finance teams.
- Conducting mock audits to identify weak spots.
By maintaining strong compliance, you reduce the risk of future enquiries and keep operations uninterrupted.
Why Choose Us
Our tax advisors have guided clients through everything from routine HMRC checks to complex fraud cases. We know how investigations progress, what HMRC looks for, and how to respond strategically. You’ll never face an enquiry alone or unprepared.
Every engagement is handled with discretion, technical accuracy, and calm communication. We focus on resolving matters quickly while protecting your finances and your reputation. You’ll have one point of contact throughout—no confusion, no guesswork, and no unnecessary delays.
Industry Statistics That Matter
- HMRC opens more than 300,000 tax investigations each year across all categories.
- Over £30 billion in additional tax revenue is recovered annually through compliance activity.
- Around 25% of small businesses experience a tax review within three years.
- Digital data matching now drives 85% of new investigation cases.
- Professional representation reduces investigation penalties by up to 60%.
Frequently Asked Questions
HMRC may open an enquiry due to random selection, discrepancies in returns, or third-party data suggesting undeclared income.
Yes. We act as your authorised representative, handling all communication, meetings, and documentation.
Minor cases may close in a few months, while complex enquiries or fraud cases can take over a year.
Contact us immediately before responding. We’ll review the letter, confirm the scope, and advise on next steps.
Yes. We can take over at any stage and work to stabilise the process, even after initial correspondence.
Partner with UK Tax Investigation Specialists Who Protect Your Interests
A tax investigation doesn’t have to derail your business or peace of mind. With Pearl Lemon Tax by your side, you’ll have skilled advisors who understand how to manage HMRC efficiently and reach fair resolutions.
Book a consultation today and let’s discuss how we can bring your tax investigation to a close.
