Received a Letter from HMRC?
A letter from HMRC does not by itself mean anything is wrong. It does mean the next step should be a considered one.
What to do first
Six things that hold true whatever kind of letter has arrived.
1
Do not ignore it
HMRC letters usually carry a date by which a response is expected. Missing it can narrow your options and may affect penalties.
2
Do not reply in a hurry
A quick answer given without the full facts can widen an enquiry. Understand what is being asked, and why, before anything is sent.
3
Note the deadline
Find the response date and the name or reference of the HMRC officer or team. If more time is genuinely needed, it can often be requested.
4
Keep everything together
Keep the letter, the envelope, any schedules or factsheets enclosed and any earlier correspondence about the same matter.
5
Do not alter or destroy records
Leave your records exactly as they are. Gather what exists rather than recreating what does not.
6
Get specialist input early
The earlier the position is understood, the more choices remain open about how to respond.
What kind of letter is it?
The wording on the first page usually tells you which of these you are dealing with.
- Tax investigations
An enquiry into a tax return
HMRC is checking a Self Assessment or Company Tax Return, either in full or on a particular point.
- Compliance checks
A compliance check
A request for information or documents to test whether tax has been reported and paid correctly.
- COP9
A COP9 letter
HMRC suspects tax fraud and is offering the Contractual Disclosure Facility. The response window is short and the decision matters.
- COP8
A COP8 letter
A specialist investigation, often into complex arrangements, avoidance or significant amounts of tax.
- VAT investigations
A VAT, PAYE or CIS check
A review of VAT returns, payroll, employment status or subcontractor payments.
- Penalties
A penalty notice or assessment
HMRC has decided that tax or a penalty is due. There are time limits for challenging the decision.
- Voluntary disclosures
A 'nudge' or one-to-many letter
HMRC holds information suggesting something may be missing from your returns and is asking you to check.
- Disputes and appeals
A decision you disagree with
You may be able to ask for a review or appeal, within strict time limits.
What a case review looks at
Before anything goes back to HMRC, we establish:
- What HMRC is actually asking, and under which powers
- Which tax years, taxes and entities are in scope
- The deadline and whether more time should be requested
- Where the areas of potential exposure lie
- What should, and should not, be provided at this stage
- Whether your existing accountant should respond or specialist representation is needed
Already have an accountant?
That is not a problem.
TaxResolve can handle the HMRC investigation while your existing accountant continues dealing with your normal accounts and tax affairs. Your accountant can work with us directly, or you can contact us yourself.
We work alongside existing advisers.
Has HMRC given you a deadline?
Tell us the date on the letter when you get in touch, so the response can be planned around it.