Date posted: 26th Mar 2026
HMRC is investing heavily in data and analytics to spot returns that look unusual or higher risk. It now compares your expenses with sector norms and your own history, which means big changes or vague “other” costs are more likely to trigger questions. Even compliant companies are seeing more enquiry letters, often months after year‑end, asking for breakdowns, invoices and explanations.
Hotspots in your company accounts
HMRC can ask about anything and in recent enquiry letters HMRC have asked about:
- The make up of cost of sales figures.
- The vehicles within a company and querying whether the vehicles are vans or cars.
- Travelling and subsistence costs.
- Insurance expenditure.
Simple steps to reduce risk
You can’t stop HMRC opening an enquiry, but you can make it far less painful.
- Tighten bookkeeping: Avoid large “miscellaneous” codes and keep software up to date.
- Separate business and personal: Use business accounts and cards only.
- Sense‑check before filing: Review year‑on‑year movements and be ready to explain big changes.
How we support you
HMRC correspondence can be stressful and time‑consuming if you are not used to it.
We can:
- Help you improve documentation and processes around key expense areas.
- Handle HMRC enquiries on your behalf, preparing clear, robust responses.
- Provide fee protection to cover professional fees for dealing with an HMRC enquiry.
If you have received a letter from HMRC, or you simply want to reduce the risk of an enquiry, contact our team to discuss your options.
