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HMRC Compliance Check
Protect Your Position & Respond Correctly
HMRC compliance check support by tax specialists. We handle letters, notices, calls, challenge scope, and negotiate fair outcomes. Our tailored approach reduces stress and keeps you compliant with confidence.
Facing an HMRC Compliance Check? Get Expert Help
How a Compliance Check Starts
HMRC compliance check often starts with a letter or phone call asking for records, explanations, or a meeting. Next may come a Schedule 36 information notice setting deadlines and scope. Stay calm, reply on time, and keep a clear audit trail. We triage your risk, narrow the questions, manage evidence, and negotiate fair treatment to reduce penalties and disruption. Early engagement protects access to lower penalties..
HMRC Enquiry & Compliance Check Support
Received an HMRC enquiry or compliance check letter? Do not ignore it. We assess your position quickly, explain your rights and obligations, and map out a clear plan. Our team prepares records, manages information notices, and presents accurate calculations and context. If disagreement arises, we pursue practical solutions, including mediation, to close matters fairly and.
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We are a team of specialist tax advisors who are delivering expert guidance on tax compliance, international tax, HMRC investigations, business structuring, capital gains, inheritance tax, corporation tax and self assessment services.
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What is an HMRC Compliance Check?
HMRC compliance check is when HM Revenue and Customs reviews whether your tax returns, records, and payments are accurate. Think of it like a quality check: HMRC wants to see that your figures match the evidence. A check can focus on Self Assessment, PAYE, VAT, or CIS, and might start with a letter or phone call asking for information. Sometimes HMRC sends what’s called an information notice asking for specific documents. That notice sets a deadline and outlines what they want to see.
What should you do first? Stay calm, read the letter carefully, and note the dates. Then gather records: bank statements, invoices, payroll files, sales and purchase lists, and any working papers your accountant used to prepare returns. If something is missing, write down why and how you will replace it. Avoid guessing; be clear and consistent.
A good response is timely, complete, and polite. It answers the questions and explains anything unusual, like one-off refunds or COVID periods. If you disagree with a request because it seems too wide, you can ask HMRC to narrow the scope. If cash flow is tight, you can also talk about payment options after any assessment.
At Tax Accountant, we triage the letter, map the risks, and plan the quickest safe route to closure. We help you decide what to send, draft responses, and keep the conversation constructive. Using a professional adviser keeps your response focused, which reduces the chance of follow-up questions. We translate HMRC language into plain English, prepare a simple index to your documents, and flag items that need context so nothing is misunderstood. If a payment plan is needed, we help model affordable options and present them clearly. We keep you informed at each step with clear timelines, plain-English updates, and practical next actions.
How does a compliance check usually start?
Most compliance checks begin with a letter inviting you to explain a point or provide records. HMRC may have spotted something in your return, matched data from banks or platforms, or noticed patterns that need clarification. Sometimes the first contact is a phone call confirming who handles your tax and where to send documents. After that, HMRC may ask for meetings or a video call to walk through your processes.
Next, you might receive a formal information notice that lists the precise records required. It can cover bank statements, sales and purchase ledgers, VAT workings, payroll reports, subcontractor statements, or tenancy files. The notice should state a deadline. If the list is broad, you can request a reduction to what’s necessary, explaining why certain items are not relevant.
How should you react? Start by creating a document tracker so nothing is missed. Label files clearly, show calculations, and keep a simple index. Send copies, not originals, and use a secure upload method. If you need more time, ask early and give a real timeline.
Tax Accountant helps by reviewing the initial request, challenging overreach, and preparing a focused pack that answers the questions without volunteering extras. We also brief you for calls, highlight sensitive areas, and draft a plain-English summary that connects the evidence to the numbers. When HMRC sees organised, relevant information, trust rises and questions fall. That saves you time and helps control penalties. If the initial request hints at wider concerns, we agree on a sensible scope so you do not over-disclose. We keep you informed at each step with clear timelines, plain-English updates, and practical next actions.
What records will HMRC ask for, and how do I organise them?
HMRC can request a wide range of records during a compliance check. The aim is to verify that your reported income, expenses, and taxes tie back to real documents. Typical items include bank statements for business and rental accounts, sales invoices, purchase bills, payroll reports, subcontractor statements, VAT calculations, stock records, and tenancy agreements. They may also ask how you keep records and what software you use.
Keep everything organised. Build a year-by-year folder with subfolders for revenue, costs, payroll, and bank. Use clear file names and include a cover sheet that lists totals and explains any unusual entries, like deposits from owners or grant income. This helps HMRC follow your trail without confusion.
What about your accountant’s working papers? Some working papers are private, but summaries that support submitted figures are often helpful. If HMRC asks for something sensitive, you can discuss alternatives, such as providing schedules rather than raw notes. The goal is to prove accuracy without exposing irrelevant material.
Tax Accountant prepares a tailored evidence list, checks whether the request is proportionate, and builds a tidy pack that answers each point. We also reconcile the figures to your returns, so the story is consistent. When HMRC can see your logic step by step, they are more likely to accept the position and close the check sooner. We also consider context. Seasonal businesses, one-off refunds, and grant payments can make figures look odd unless explained. Good housekeeping matters after the check, too. We keep you informed at each step with clear timelines, plain-English updates, and practical next actions.
How are penalties decided, and how can I reduce them?
Penalties depend on why the error happened and how you respond. HMRC looks at behaviour: was the mistake reasonable, careless, or deliberate? They also consider whether you came forward promptly, how quickly you supplied information, and whether you helped fix the issue. Good cooperation usually leads to lower penalties, and in some cases, penalties for careless errors can be suspended if you agree to improve processes.
What can you do to reduce exposure? First, get the numbers right. Recheck calculations, rebuild missing records, and correct obvious errors before sending anything. Second, provide a clear explanation: describe what went wrong, when it changed, and what controls you have now. Third, answer questions on time and keep communication constructive. A respectful, evidence-led approach builds credibility.
If you disagree with HMRC’s penalty view, you can challenge the percentage, the years included, or the description of behaviour. You can also request an internal review or propose mediation to find a middle ground. The earlier you raise concerns with facts, the better your chance of a fair result.
Tax Accountant focuses on three levers: accuracy, narrative, and mitigation. We present clean computations, a factual timeline, and practical improvements, such as better software or training. That combination helps reduce penalties and move the case to closure with minimal disruption. We also help you learn from the experience. After the check, we document simple control improvements you can keep: monthly reconciliations, better expense coding, and short reviews before submitting returns. We keep you informed at each step with clear timelines, plain-English updates, and practical next actions.
What is an information notice (Schedule 36) and how do I respond?
An information notice is a formal request for documents or explanations. It sets out what HMRC wants and by when. Notices should be specific and proportionate. If a request is too wide, not reasonably required, or duplicates material already provided, you can ask HMRC to narrow it. Keep the tone measured and offer targeted alternatives that still answer the question.
How should you respond step by step? First, read the notice carefully, then make a checklist mapped to each item. Second, gather documents and highlight the parts HMRC needs, such as totals, dates, and counterparties. Third, prepare a cover letter that explains the pack and points to the right pages. Fourth, send by secure method and keep proof of delivery. If time is short, ask for an extension early and provide partial material while the rest is being prepared.
What if mistakes are found? You can make corrections and put right any late filings. If tax is due, propose payment options that are realistic. Avoid silence; regular updates show cooperation.
Tax Accountant reviews each notice, challenges overreach, and builds a complete, tidy response. We make sure the evidence matches your returns and draft a concise narrative that answers the purpose of the request. Keep future risk low by improving controls. Simple changes make a difference: reconcile bank accounts monthly, keep digital copies of receipts, and label transfers clearly. We keep you informed at each step with clear timelines, plain-English updates, and practical next actions.
How should I handle an unannounced visit from HMRC?
Sometimes HMRC officers visit business premises without advance notice to check records or observe operations. If this happens, stay calm and verify identification. You can ask to move to a quiet area, arrange for your adviser to join, and keep the visit focused on relevant issues. HMRC should explain the purpose and scope. If a visit is disruptive, you can propose a short pause to gather key documents.
Preparation helps. Keep essential records accessible: till summaries, sales logs, cash controls, VAT workings, payroll reports, and stock lists. Ensure staff know who can speak for the business and who to contact if inspectors arrive. Never guess answers; if you do not know, say you will check and respond in writing. Keep notes of questions asked and documents shown.
After the visit, HMRC may send a letter listing the next steps. Respond quickly, provide any agreed documents, and clarify misunderstandings. If you disagree with observations, set out your reasons politely and supply evidence.
Tax Accountant can brief your team, prepare a visitor pack, and attend visits in person or remotely. We help manage questions, document what was discussed, and follow up with a clear, evidence-led response. Preparation also includes a short script for staff so messages stay consistent. As a follow-up, we send a concise letter confirming what occurred and what remains outstanding. We keep you informed at each step with clear timelines, plain-English updates, and practical next actions.
What is ADR (Alternative Dispute Resolution), and when should I use it?
If you and HMRC cannot agree the facts or the penalty, Alternative Dispute Resolution can help. ADR is a structured meeting led by a neutral facilitator who helps both sides understand the issues and explore settlement. It is not about winning a court case. It is about solving problems quickly and cost-effectively. Many disputes are narrowed or resolved entirely because misunderstandings are cleared up and evidence is reviewed together.
When does ADR make sense? Use it when there is a real disagreement about how the rules apply, the quality of disclosure, or the size of a penalty. It also helps when communication has stalled. Before ADR, prepare a short paper explaining your position, the key evidence, and a realistic outcome you can accept. Keep it practical and respectful.
During ADR, listen carefully, take notes, and be open to creative solutions, like payment terms or revised penalties. If ADR does not fully solve the case, it often clarifies what remains, making any further review or appeal faster and cheaper.
Tax Accountant prepares the ADR pack, coaches you for the meeting, and negotiates firmly but fairly. Our focus is closure: we cut through noise, highlight facts, and push for a balanced solution that lets you get back to business quickly. After ADR, we capture lessons and confirm any actions in writing. We keep you informed at each step with clear timelines, plain-English updates, and practical next actions.
What are time limits and discovery assessments?
Time limits set how far HMRC can look back. Shorter limits usually apply where there is no fault; longer limits apply for carelessness or deliberate behaviour. Discovery assessments allow HMRC to make adjustments if they later find that tax was underpaid. The exact period depends on the circumstances, but the principle is simple: better behaviour and records generally mean shorter lookback and fewer years in play.
What can you control? Keep accurate records, file on time, and correct mistakes promptly. If an error is found, explain it clearly and show what has changed. This improves credibility and can reduce both the period assessed and any penalties.
A reasonable excuse can also matter. If something outside your control caused a failure, set out the facts, the timeline, and the steps you took once the problem was discovered. Evidence is key.
Tax Accountant assesses how the rules apply to your timeline and prepares a defensible approach. We check whether the years included are justified, whether a shorter period is appropriate, and whether behaviour has been classified correctly. By presenting a clear chronology with supporting documents, we aim to limit exposure to only what is necessary and fair. If you receive a letter about older years, start by checking dates and reasons, then assemble a simple timeline. We keep you informed at each step with clear timelines, plain-English updates, and practical next actions.
Can I get a Time to Pay arrangement if I owe tax?
Payment pressure should not stop you from resolving a compliance check. If tax is due, you can usually discuss a Time to Pay arrangement so the bill is spread over affordable instalments. The stronger your proposal, the better your chances. Build a cash flow forecast showing income, essential costs, and the monthly amount you can maintain without default. Be realistic; overpromising causes avoidable stress.
What makes a proposal credible? Provide recent bank statements, management accounts, and any seasonal patterns that explain your plan. Offer to pay something up front. Keep other taxes current so the arrangement does not fall over. If circumstances change, tell HMRC early and propose an adjustment.
At the same time, look for internal improvements. Tighten invoicing, follow up on late payers, and review subscriptions and stock levels. Small changes can free cash that shortens the plan and reduces interest.
Tax Accountant designs a proposal that fits your numbers, drafts a clear cover letter, and handles discussions. We aim for terms you can keep and a process that closes the compliance check smoothly. If the amount is large, consider small operational fixes that speed cash collection and plan stock purchases with realistic lead times. We keep you informed at each step with clear timelines, plain-English updates, and practical next actions.
Which route should I take: amend, disclose, ADR, or appeal?
Sometimes a simple amendment can fix a recent error. Other times, you need a broader route because multiple taxes or older years are involved. If HMRC suspects serious behaviour, a specialised process may apply. The key is to pick the option that fits your facts and to keep the message consistent across all returns.
Start with a short strategy call. We map the issues, identify which tax heads are touched, and choose the safest path. If it is narrow and recent, an amendment may be faster. If multiple years or offshore elements appear, a wider disclosure might be better. If there is a genuine dispute on interpretation, mediation can unlock progress.
Throughout, keep evidence at the centre. Your numbers should tie from source documents to submitted returns. Explanations should be short, honest, and backed by records. This approach builds trust and keeps penalties proportionate.
Tax Accountant acts as your project manager: we triage, gather documents, run calculations, draft narratives, and keep the timetable under control. Our goal is predictable closure with minimal disruption. We close with tidy documentation so the file is audit-ready: calculation schedules, evidence index, and a short narrative explaining decisions. We keep you informed at each step with clear timelines, plain-English updates, and practical next actions.