What seems strange to me is.......Why do you have to prove you don't also have overseas income, surely they would have to prove otherwise to dispute that. A letter stating " No overseas income" should be sufficent, which would then require HMRC to agree or prove otherwise. With regards to having an accountant, £300 seems a very expensive letter, on your behalf. You mentioned a UK home, if you have retained a UK residence, maybe that is the reason they are pursuing another questionable income. Is the Isle of Mann investment classed as a tax-free investment? Just a thought.
I had a friend who was accused by HMRC of not having the living standards they expected (WTF!) - he paid accountants to prove he had a simple life and HMRC accepted the result - BUT the next year they made the same accusation! When funded by the taxpayer, any organisation can continue to act as badly as it wants to.
I had a little dispute with Workman's Compensation in Canada. Regarding a monthly payment to the Government to insure any employees that get injured at work. I had been paying them for several years. They called me and said "you have a stallion on your farm" so my premiums more or less double. They were told the employees don't handle the stallion. Apparently that didn't matter. I told them I would pay that amount going forward. They wanted payment retroactively, the discussion went downhill from there. I asked them how much premium they wanted for the kid that cut my lawn for cash 20 years ago.... In the end I told them, you send me a bill for what you think I owe you and we can discuss it. They never got back to me. Fook them.