How can tax investigations impact mental health?
Posted: 29th October 2026
Is HMRC really concerned with the welfare of taxpayers? That’s been the question we’ve been asking ourselves, particularly this month while we focused on Mental Health Day on the 10th of October. This is a day that famously focuses on difficult conversations and challenging topics, which we’re never ones to shy away from.
That includes some hard conversations about money and taxes. Financial anxiety affects just under 50% of the UK population, and its impact on mental health can’t be understated.
We see HMRC investigation stress first-hand and just how intensely prolonged processes and insecurity can affect someone’s mental health. It’s easy to see how someone can land in a bad place mentally without the right HMRC investigation support at hand.
What a tax investigation can feel like
Whether you’re familiar with the tax investigation process or not, the whole thing can feel extremely overwhelming. Suddenly life can feel taken over by feelings of stress and uncertainty, particularly if you’re not entirely sure why you’re being investigated.
Depending on the complexity of the investigation, lengthy tribunal proceedings can take years to resolve, leaving you in a state of uncomfortable limbo or frustration. It can be a tiring process.
Having worked with a range of clients on every kind of tax investigation, we understand better than most what kind of toll that can take on a person.
Why do some investigations go on for so long?
There are several reasons your tax investigation might take a long time. And it’s not always an indicator that something’s going wrong. The complexity of your business or finances, extended look-back windows, delays in getting the right documents, and any disputes can all be contributing factors.
It also depends on the type of investigation you’re going through. You can learn more about the different types of investigations here.
We know that delays and quiet periods can make some people nervous, which is why we’ll communicate with you throughout the entire process, even when it seems like nothing is happening.
The impact of prolonged stress
While our minds and bodies are set up to be able to handle short-term stress, prolonged stress can be more problematic (during lengthy HMRC investigations, for example).
If, during the course of an HMRC investigation, you start recognising any of these symptoms, they may be a sign that the stress is taking its toll and you should seek out additional support:
- Increased headaches or dizziness
- Feeling forgetful or having difficulty concentrating
- Feeling more irritable or short-tempered than usual
- Sleeping much more or less than usual
- Eating much more or less than usual
- New stomach problems
- Using more substances (drinking or smoking, for example) more to help you cope
- Increased muscle tension or pain
If you’re worried about any of these symptoms, please speak to your GP.
The wider concern
During any tax investigation, mental health can deteriorate. When stress and anxiety are left untreated, some people can feel as though they have no options left.
Suicide rates linked to HMRC investigations gained prominence in 2025 after HMRC was accused of ‘harassing’ vulnerable taxpayers. According to the Contentious Tax Group, just under half (47%) of tax specialists have lost a client to suicide during difficult investigations.
No one should be left to feel as though suicide is the answer. And it’s clear that the welfare side of HMRC is in desperate need of reform. To make change, we have to continue to apply pressure. We’ll keep gathering data so that we can build a strong case to present to MPs and lobby for change.
Our HMRC investigation support
You don’t have to deal with HMRC investigation stress alone. When you come to us for support, it’s our job to get you through the process as efficiently as possible with the best possible outcomes.
What does this look like?
- Handling all communications with HMRC, so you don’t have to. It means you can be one step removed and respond with a clear head.
- Always trying to limit the scope of an investigation by challenging any requests we believe are disproportionate or not relevant.
- Exploring all possible resolution options – whether that’s ADR, settlement negotiations or tribunals.
- Making sure any tax assessed is fair and accurate.
- Reducing any penalty amounts as much as possible.
- Maintaining strong communication with you throughout the process as we know the unknown can be anxiety-inducing. That’s why we’ll maintain contact with you, even when nothing is happening during the investigation.
When to seek specialist support
We’d always advise working with an expert as early in the process as possible. HMRC investigation stress can be less overwhelming when you have a specialist team in your corner.
At NHD Tax Solutions, several of our expert team members have worked inside HMRC, understand how the processes work, and can prepare you as much as possible.
If you’re worried about a potential or recently opened tax investigation, please contact us. Support is available all year round, not just for Mental Health Day.
If you’re struggling with money, your mental health, or both, please remember that you’re not alone. There are organisations that can help you.
Samaritans: 116 123
