Since 1996 HMRC has had powers under Self Assessment to investigate taxpayers on a purely random basis without having to give a reason for these “Full Enquiries”. In addition, in April 2000 the Inland Revenue introduced IR35, which places a significant extra burden of compliance upon Personal Service companies.
You would be advised to take out insurance cover that can help you deal with the Revenue Authorities on an equal basis.
If you require further information, please contact Abbey Tax directly on 0870 607 7000 or 01788 558 855