An HMRC audit, or enquiry, can be daunting—but preparation is key.
Here’s how to be ready:
- Keep Records Clean: Maintain organised and up-to-date bookkeeping records.
- Understand What’s Allowed: Make sure all expenses you’re claiming are genuinely business-related and supported by receipts.
- Use Accounting Software: Systems like Xero and FreeAgent simplify record-keeping and audit trails.
- Hire an Accountant: They can represent you, explain your records, and deal directly with HMRC if needed.
- Don’t Panic: HMRC may just want clarification. Respond promptly and professionally.
Regularly reviewing your accounts and preparing your tax returns accurately can significantly reduce the risk of penalties or prolonged investigations.
