We deal with HMRC
for you.
Has HMRC written to say it’s checking your return, or asking you to look at something again? Send us a copy and we’ll tell you what it means and what HMRC wants by when. Once you’ve authorised us, we deal with HMRC’s calls and letters until the check ends.
Got the letter in front of you?
Don’t ignore it, and don’t reply in a hurry. Note the date on it, then send us a copy, plus any earlier letters about the same thing.
First, send us
the letter.
Email a copy or a photo to info@yorkshire-accountants.com. We’ll tell you what kind of letter it is, what HMRC is asking for and the date you need to act by.
Not every HMRC letter means you’re being investigated. Some are one standard letter sent to lots of people, asking you to check your return and put it right if it’s wrong. HMRC says these aren’t compliance checks, but you still need to decide what to do about them.
Already partway
through a check?
You can still come to us. Send us everything HMRC has sent so far, and any replies you’ve made, and we’ll pick it up from where it is.
You authorise us,
then we deal with HMRC.
HMRC will only deal with an accountant for you once you’ve authorised them. You can do that online, or on paper with HMRC’s form 64-8. We’ll tell you which suits you and help you with it.
After that, we deal with HMRC by phone and in writing, and tell you each time HMRC writes back.
Sources: GOV.UK: get help with tax; GOV.UK: authorising an agent to deal with your tax affairs
We gather the records
and reply.
HMRC usually asks for records such as bank statements and invoices. We’ll tell you what to send, go through it with you, and send it by the date on the letter. If you need more time, we can ask the officer for it.
HMRC normally asks informally first. If that doesn’t work, it can send an information notice, which is a legal document with a deadline. If you don’t comply in time, HMRC can charge a £300 penalty, then up to £60 a day.
Calls
and visits.
HMRC does some checks by phone, and you can ask it to write to you instead. If HMRC wants to visit, it usually gives at least 7 days’ notice. Officers can only enter the parts of your home used for business, unless you invite them in or they’re carrying out a valuation. Before a visit, we’ll go through your records with you.
If your health or circumstances make dealing with HMRC hard, HMRC offers extra support. Tell us, and we can raise it with the officer.
Sources: HMRC factsheet CC/FS1a: about compliance checks; HMRC factsheet CC/FS3: visits; GOV.UK: get help from HMRC if you need extra support
How a
check ends.
When the check is finished, HMRC either sends you one or more decision notices or agrees a settlement with you. If you can’t pay what’s owed in one go, we can help you set up a payment plan with HMRC.
If you disagree with a decision or penalty, we can help you appeal. You usually have 30 days from the date on the decision letter, or from the date the penalty was issued, so send it to us early. If a check has stalled, you can ask for Alternative Dispute Resolution, where an HMRC officer trained in mediation acts as a neutral mediator. It doesn’t affect your right to appeal or ask for a review.
Sources: HMRC factsheet CC/FS1a: about compliance checks; GOV.UK: if you cannot pay your tax bill on time; GOV.UK: appeal an HMRC decision; GOV.UK: appeal a penalty; HMRC factsheet CC/FS21: Alternative Dispute Resolution
Know something’s
missing from a past return?
Telling HMRC before it finds out usually means a lower penalty. If you took reasonable care, there’s no penalty at all. Otherwise the penalty is a percentage of the tax that was lost, and the range depends on why the return was wrong and whether you told HMRC first.
| Why it was wrong | You told HMRC first | After HMRC prompted you |
|---|---|---|
| Careless | 0% to 30% | 15% to 30% |
| Deliberate | 20% to 70% | 35% to 70% |
| Deliberate and concealed | 30% to 100% | 50% to 100% |
If the income or gains came from abroad, penalties can be higher, up to 200% of the tax. A disclosure only counts as unprompted if you make it before you have any reason to think HMRC has found the problem, or is about to.
We can make the disclosure for you: through the Let Property Campaign for individual landlords letting residential property, the Worldwide Disclosure Facility for income or gains from abroad, or HMRC’s Digital Disclosure Service for other income. You tell HMRC first that you’re making a disclosure, then you have 90 days from the date HMRC acknowledges it to send the full disclosure and pay. If HMRC has already opened a check, you tell the officer dealing with it instead.
Sources: HMRC factsheet CC/FS7a: penalties for inaccuracies; HMRC: your guide to making a disclosure; HMRC: Let Property Campaign; GOV.UK: Worldwide Disclosure Facility
Questions people
usually ask.
If yours isn’t here, email info@yorkshire-accountants.com.
Why has HMRC picked my return?
Most checks are chosen by risk, for example where a lot of tax is at stake or something looks wrong. A smaller number are random, and HMRC can check a return that appears to be in order. For a Self Assessment return filed on time, HMRC usually has 12 months from the date it received the return to open an enquiry.
Sources: HMRC Self Assessment manual: selecting returns; HMRC Enquiry Manual: the enquiry window
How long do I have to reply?
Go by the date on the letter. An information notice must give you a reasonable time. HMRC’s guidance to its officers says that, as a rule of thumb, most information can reasonably be provided within 30 days, but it can take longer, for example around a business’s busy season. If you need longer, we can ask the officer.
Sources: HMRC Compliance Handbook: time to comply; HMRC factsheet CC/FS2: information notices
Is this letter, call or text really from HMRC?
HMRC may write to you first, then follow up by email, call or text. If you’re not sure it’s genuine, send it to us before you reply. You can also report suspicious contact to HMRC.
Do I have to pay while I’m appealing?
For direct tax, you can ask to delay paying the disputed tax when you appeal to HMRC or ask for a review. If you’ve appealed against a penalty, you don’t have to pay it until the appeal is settled. Interest can still be charged on the disputed tax until it’s paid.
What if I can’t pay what HMRC says I owe?
You may be able to pay in instalments, if HMRC agrees a plan is affordable for you. To set up a Self Assessment plan online, you need to be up to date with your tax returns, owe £30,000 or less, and have no other tax debts or HMRC payment plans. Interest is charged at the Bank of England base rate plus 4% a year.
Sources: GOV.UK: if you cannot pay your tax bill on time; HMRC: set up a Self Assessment payment plan; HMRC interest rates
Is dealing with HMRC part of my accounts or tax return work?
No. Dealing with an HMRC check is a separate job from your accounts or tax return, so we’ll agree it with you on its own before we start.
Had a letter
from HMRC?
Ring us Monday to Friday, 9am to 6pm, or email a copy to info@yorkshire-accountants.com. We’ll tell you what HMRC is asking for and what happens next.