Tax enquiry length increases to three months

Three months has become the average time it takes HM Revenue & Customs to investigate the ordinary taxpayer, indicating that tax probes are becoming more prolonged.

In fact, local compliance teams for HMRC were able to complete their investigations in just 2.5 months in 2012-13, but now that duration has extended by a fifth, figures show.

“A 20% jump in the average time taken [for HMRC to investigate] means a rise in levels of stress and cost” for the probed taxpayer, said Kevin Igoe of PFP, which obtained the figures.

The tax investigations firm cautioned that while three months has become the average duration of a HMRC enquiry, many take much longer and can even stretch into years.

“Any increase in the length of time taken for HMRC to complete a tax enquiry will be a major concern for those being investigated” Mr Igoe  said, “[particularly as] innocent individuals are often drawn into tax enquiries.”