What happens if HMRC runs compliance checks on my business?

HMRC carry out a company compliance check to make sure you are paying the right amount of tax.

HMRC’s team should give one week’s notice before starting this, but may decide an unannounced check is more appropriate.

An expert who knows what records HMRC’s team can legally ask for should always be present during a compliance check.

An HMRC check can easily turn into a full investigation, so having an expert on your side from the beginning will make a massive difference.

We know that it can be worrying and stressful for everyone concerned, that is why our specialists will relieve the stress of your compliance check.

We guarantee you a fair trial during a HMRC check.

Got an enquiry?

Compliance Check Legislation

 

The legislative framework for compliance checks, which is contained in Finance Act 2008, provides for

    • Inspection powers­ Sch. 36
    • Information powers – Sch. 36
    • Record keeping – Sch. 37
    • Time-limits for assessments and claims – Sch. 39
    • The power to access and inspect computers – s. 114

The inspection powers contained in Sch. 36 give HMRC the power to visit business premises and check assets and records.  They can use this power before a return has been received.  While any visit will normally be by prior arrangement, HMRC have the power to make unannounced visits.

The information powers included in Sch. 36 replace the old information powers that were contained in:

    • TMA 1970, s. 19A – written information powers for SA enquiries
    • TMA 1970, s. 20 – written information powers (for direct taxes only)
    • TMA 1970, Sch. 1A, para. 6 – written information power for enquiries into a claim
    • TMA 1970, Sch. 1A, para 6 – written information power for CTSA enquiries
    • FA 1998, Sch. 18, para 27-29 – VAT power to look at records and information power
    • VATA 1994, Sch. 11, para 7 – the power to look at PAYE records
    • SI 2003/2682, reg 97 – the power to look at NICs records
    • SI 2001/1004, Sch. 4, para 26 – the power to look at CIS records

Provided they are reasonably required for the purpose of checking a tax position, the new powers give HMRC the power to require taxpayers or third parties to provide information and produce documents.

Some of the information and inspection powers contained in Sch. 36 can only be used by, or with the agreement of, an Authorised Officer.  The Authorised Officer is generally the officers’ line manager but may be the manager’s manager or someone outside the operational unit with appropriate experience or training.

What Our Clients Say

“

I had a letter from HMRC inviting me to attend a Police Station for an interview. I didn’t know what to do. I contacted KinsellaTax who dealt with the whole thing on my behalf. I must say that I looked forward to travelling from Newcastle to Manchester, a long way but when I left the office everytime I felt so much better after talking it through with KinsellaTax. Thanks KinsellaTax – I’m glad you were there for me.

John from Newcastle
“

The outlook was bleak but the moment KinsellaTax took me up under their wings, things started to pick up. I spent years worrying about not declaring my income properly but rather than owning up earlier I just hid away until the worry was unbearable. The hard work from KinsellaTax is admirable; truly admirable. Thank you so much

AA from London
“

Our accountant gave us appalling advice and really messed things up for the company. Thanks KinsellaTax for trawling through everything and finding the answer. I don’t think HMRC would have settled the case so quickly if it wasn’t for your impressive work. Thanks to you I now have a new accountant I can trust and if I ever run into trouble again you will be the first person I will call.

SB from London
“

The taxman was trying to make me bankrupt but once you became involved KinsellaTax, they soon backed down. Losing my home was a very real possibility for me but luckily, no more. My wife and I are now looking forward to getting on with running our business without tax inspectors breathing down our necks and we only have you to thank for that. I wish your team the very best of luck and would tell anyone I know who is in trouble to come to you straightaway.

PL from London
“

Your determination and dedication to fighting our case with HMRC has worked absolute wonders. After settling our undeclared rental income we are now free to live our lives peacefully and we now know how to conduct our tax affairs properly for the future. My wife and I can’t thank you enough

PB from Bolton
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It was a long slog but we got there in the end. Thank you for everything you have done in clearing up issues with my offshore accounts. I can’t even begin to tell you how much weight has been lifted from my shoulders.

BB from Southampton
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I cannot thank you enough for resolving my problem. I ran with another firm for over three years and frankly until I came to you there was no progress at all. Thanks to the efforts of KinsellaTax and expertise the matter was settled in weeks with a settlement of 50% less of what the previous agent estimated I might owe, without additional penalties and interest. I can now get on with my life. Many, many thanks.

Mrs. W from Manchester
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You fought the case, which at times I despaired, but I stuck with your advice and your professionalism which won the day. HMRC conceded there was no case to answer. Thank you so much. I am just hoping the Tribunal will give us all of our costs back.

TT from Warrington
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I received a letter from HMRC saying that they were reviewing my tax affairs. I contacted KinsellaTax for help and Danielle finalised everything for me. What a brilliant result, she did an excellent job dealing with my Local Compliance Check by HMRC, and I can't thank her enough.

Linda from Northern Ireland
“

Hi Kevin and Alan Thank you for your letter of 4th August 2015. What an absolutely amazing result you have achieved, I cannot begin to tell you how delighted I am with this outcome. Thank you both so very much for the diligence and care which has led to this outstanding result. Kind regards

AA from Stoke on Trent

 

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Call an expert at KinsellaTax on 0800 471 4546 today.