HMRC Hidden Economy Team (HET)

HMRC believes that at any time up to 2 million people may be involved in undeclared work or business activity.  Such activity is largely ‘low-level’, involving modest amounts of tax by HMRC investigations standards.

HMRC’s Hidden Economy Teams attempt to identify and target the individuals involved and to recover the tax  quickly and cost-effectively.

Having identified a potential target, the Hidden Economy Team will normally announce their investigation by writing to the person. However, since 1 April 2009, the new inspection powers of Schedule 36 FA 2008 enables HMRC officers to inspect business premises and private homes used for business purposes.  Usually this will be by prior notice, but in the most serious cases they may arrive without warning.

Most people involved in the hidden economy don’t have a regular accountant or tax advisor, and don’t have experience of dealing with HMRC. So whatever form the initial contact from HMRC takes, it is usually a worrying and shocking event.  Also, many assume that criminal prosecution will automatically result, which is not the case. Properly handled, a Hidden Economy Team investigation should be capable of settlement quickly, on terms that the individual can afford.

If you have been contacted by HMRC

If you have been contacted by HMRC’s Hidden Economy Team, we can help you. At Covertax we handle all types of Hidden Economy Team investigation and we understand how worrying and stressful they are.

We do everything in our power to minimise the stress, conclude the investigation quickly on the best possible terms, and allow you to get on with your life.

 Contact Tony Borman 0845 643 5450 for a free confidential discussion.