HMRC Compliance Checks

Are you facing a HMRC compliance check and have received a request for information from HMRC? If so, our Tax Dispute Experts can manage the process on your behalf and work towards a swift resolution.

Handling HMRC Communication

Our experts represent you in all communications with HMRC, ensuring that responses are timely and accurate.

Prepare and submit required documents and evidence

Our meticulous approach ensures that HMRC receives accurate and complete information, which helps in avoiding delays and complications.

Provide strategic advice to navigate the investigation effectively

We provide strategic advice tailored to your specific situation. We have a proven track record of success, often closing compliance checks with reduced and even no penalties.

What is a Compliance Check?

A compliance check is a review conducted by HMRC to assess the accuracy of a submitted Self-Assessment tax return. These checks can be informal or formal. An informal check may involve simple questions about the return, whereas a formal compliance check includes a notice of enquiry and often requests detailed documents and information. For the enquiry notice to be valid, HMRC must adhere to strict time limits.

HMRC compliance check letters vary greatly in form; it's crucial to seek professional advice before responding to any HMRC queries related to a filed return.

What Triggers a HMRC Compliance Check?

Compliance checks can target specific aspects of your tax return (known as an aspect enquiry) or they can be a full enquiry into all areas of your return. HMRC rarely selects cases at random. More than 90% of investigations are initiated because HMRC holds information suggesting something is wrong, although this may not be stated explicitly from the outset.

HMRC's Powers During Compliance Checks

HMRC often requests information and documents to determine whether you've underpaid tax and to understand the behaviour leading to any underpayment. These requests can be extensive, and without the knowledge or confidence to challenge them, you might find yourself subject to a 'fishing expedition' where HMRC takes advantage of your willingness to cooperate. For businesses, HMRC can also request to inspect business premises.

These enquiries can be extremely disruptive and stressful. Appointing the right advisor to handle HMRC on your behalf allows you to focus on your business and leads to a quicker resolution.

Duration of a Compliance Check

There is no set limit for how long a compliance check can last, as circumstances vary. Some cases can be resolved swiftly if managed correctly, while others can become prolonged and last years if not proactively managed. Under their charter, HMRC has a duty of care to ensure enquiries do not become unnecessarily protracted. If you have concerns about the duration of an ongoing enquiry, seek specialist advice.

HMRC Compliance Check Penalties

Once an enquiry is resolved, HMRC may impose penalties. The level of penalty depends on the behaviour leading to the inaccuracy in the return and your cooperation throughout the enquiry. Detailed information about penalties following an enquiry can be found on HMRC's website.

Handling an HMRC Compliance Check Letter

If you receive an HMRC compliance check letter, it's important to respond promptly and accurately. Here are some steps to follow:

Read the Letter Carefully: Understand the specific information and documents requested by HMRC.
Gather Documents: Collect all necessary documents, such as tax returns, financial statements, and supporting records.
Seek Professional Advice: Consider consulting with a tax advisor or compliance expert to ensure that you provide accurate and complete information.
Respond Promptly: Adhere to the deadlines specified in the letter to avoid penalties.

How Our Tax Dispute Experts Can Help

We provide thorough compliance reviews to identify potential risks and ensure adherence to regulatory requirements. Our experts conduct detailed assessments of your business practices to promote compliance and mitigate risk.

During a compliance check, our team will:

Represent Your Interests: Manage all communications with HMRC to ensure professionalism and efficiency throughout the process.
Prepare Detailed Documentation: Collect and organise all necessary documents, ensuring submissions are accurate and complete.
Review Business Practices: Analyse your business operations and records to identify and address any compliance issues.
Provide Strategic Advice: Develop tailored strategies to navigate the compliance check and resolve any identified issues effectively.
Handle Information Requests: Respond promptly and accurately to HMRC's requests for additional information.
Manage Risks: Identify potential problem areas and implement strategies to minimise risks.

Contact Us

Navigating an HMRC compliance check letter can be challenging, but with our expert support, you can handle the process with confidence. Contact us for a consultation and let us guide you through every step.