How Far Back can HMRC go?

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Can HMRC investigate closed companies?

Yes! HMRC do have the power to reopen previously settled tax returns if an investigation reveals serious questions.

However I have not seen this happen regularly and they have other ways to attack  a  director personally these days rather than go for a closed company

Normally the HMRC tax investigation time limit is 4 years, in which they can go back to re-claim back tax .

If someone has been proved to be careless (submitting tax returns with mistakes), HMRC can go back 6 years.

Deliberate tax evasion is not difficult for them to prove or infer so they can go back 20 years to find what they’re looking for.

So if you’re thinking of closing a limited company and starting a new one, it may be best to take advice first as you could be made personally liable and face bankruptcy in some cases.


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