Tax Disputes & Investigations

Requests for Information and Documents

Every year HM Revenue & Customs (HMRC) undertakes 'Compliance Checks' of Individual, Partnership and Company Tax Returns to ensure those taxpayers are paying the correct amount of tax and claiming the right amount of allowances and reliefs. Ordinarily, a Compliance Check will only to be carried out when HMRC has identified a 'risk' in a taxpayer's tax position (or self-assessment of tax). Nowadays, HMRC carries out very few random checks.

On the page:

• Has HMRC the power to request information?
• What if I choose not to or cannot provide what has been requested?
• I have received an information notice, what should I do?
• Can HMRC ask other people for information as part of my Compliance Check?
• What should I do if I receive a Request for Information?
• How can OneE TDI help?
• How can I contact OneE TDI?
  

Has HMRC the power to request information?

HMRC has powers to ask you for certain documents and information relating to the areas being checked. The requests must, however, be relevant to the entries on the Tax Return and must not be general 'fishing expeditions'. Specialist advice on the compliance with HMRC information requests is invaluable as HMRC will closely review the information provided and this could lead to further questions or checks.

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What if I choose not to or cannot provide what has been requested?

If you cannot provide the documents and/or information requested or if you believe that HMRC's request is either unreasonable or not relevant to the check then you must inform HMRC and make strong, well-argued representations in support of your case. If you choose not to provide the documents and/or information requested, HMRC will pursue its request formally and seek to levy financial penalties for your non-compliance.

If you alter documents or give false information to HMRC you could have to pay a penalty or, worse still, be prosecuted.

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I have received an information notice, what should I do?

If you receive a HMRC information notice you are legally required to provide the documents/information requested therein. If you fail to comply with an information notice within the agreed time limit you may have to pay an initial £300 penalty. If non-compliance continues, additional penalties of up to £60 per day can be levied. Alternatively, HMRC can apply to an independent tribunal to levy a penalty based on the amount of tax HMRC believes is due from you.

If you have a reasonable excuse for not complying with an information notice (e.g. you are or have been seriously ill, someone close to you is dying or the documents have possibly been lost in a fire or flood) then you must inform HMRC as quickly as possible. If HMRC accepts your excuse as being reasonable, revised time limits to provide the documents/information or an amended wording of the request can be agreed.

If you believe that the request made in the information notice is unreasonable or not relevant to the check then you can appeal to an independent tribunal. Proper presentation of your case (or your client's case) at a Tribunal maximises the chances of success and trying to do this whilst also running a business/practice is difficult. Specialist advice can be invaluable.

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Can HMRC ask other people for information as part of my Compliance Check?

Occasionally, HMRC will ask 'third parties' to provide documents and/or information relevant to your Compliance Check. In most instances, HMRC will seek your permission to do so. If you refuse, HMRC will consider your reasons and can still apply to an independent tribunal for approval to seek information from a third-party. You can ask the Tribunal to refuse HMRC's application.

Exceptionally, HMRC can approach other people/parties for documents and/or information without your knowledge or consent. To do so, HMRC must first apply to an independent tribunal for approval. You will not be informed of HMRC's application and, therefore, will not be able to ask the tribunal to refuse HMRC's application.

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What should I do if I receive a Request for Information?

If you receive notice of a Request for Information, you need to consider the following points:

• Are you able to provide the documents and/or information requested?
• Is the timescale to provide the requested documents and/or information reasonable?
• Is HMRC's request reasonable and/or relevant to the check being undertaken?
• Have you a reasonable excuse for not complying with an information notice?
• Are you able to present a successful appeal against an information notice?
• Do you agree with HMRC approaching other people ('third parties') for information?

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How can OneE TDI help?

If you are contacted or challenged by HMRC, the best thing you can do is the 'right thing; the worst thing you can do is nothing. OneE TDI will help you make the right decisions.

At the core of OneE TDI is a highly experienced team specialising in all areas of tax disputes and investigations work. We offer confidential, non-judgemental advice to best defend our clients and have a proven track record in successfully managing all contentious tax matters. We provide a comprehensive service to accountancy and legal practitioners and their clients. Our advice saves our clients time and money and helps reduce their potential exposure to tax, interest and penalties.

Putting it simply, we take control and manage all issues relating to HMRC Compliance Checks so that our clients can get on with your life. What price peace of mind?

Please see the Testimonials kindly provided by our clients (or their accountants or lawyers), which confirm our levels of client service.

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How can I contact OneE TDI?

If you would like a free, no obligation discussion with us please contact either Gary Rowson or Mark Taylor on 0800 652 6156 or complete and submit the form below.

Whilst we endeavour to provide informative and accurate information, the content on this site is for general information purposes only and should not be taken to constitute tax or legal advice which must always be tailored to individual circumstances. Please contact us if you would like to discuss matters.

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