HMRC carries out millions of checks each year to ensure that individuals and businesses are paying the right amount of tax. These checks, commonly referred to as compliance checks or enquiries, can range from simple requests for clarification to more detailed investigations.
At ETC Tax, we assist clients throughout the UK in responding to HMRC compliance checks, formal enquiries, and discovery assessments. Whether your case is straightforward or more complex, we provide guidance to ensure the issue is handled efficiently and professionally.
HMRC carries out compliance checks to ensure taxpayers are reporting and paying the correct amount of tax. These checks may involve reviewing returns, requesting records, or asking for further clarification.
While all enquiries are compliance checks, not all compliance checks are formal enquiries. A compliance check may occur before a tax return is filed especially if HMRC believes there may be irregularities. A formal enquiry, however, is an official investigation into a submitted return.
In most cases, HMRC has 12 months from the date a Self‑Assessment tax return is filed to open a formal enquiry. If no enquiry is raised within that window, the return is generally considered final. However, different time limits may apply to other taxes such as Stamp Duty Land Tax (SDLT) or Corporation Tax, and we can help you understand the rules that apply in your case.
In some situations, HMRC may begin with an informal request for information before proceeding to a formal compliance process. Knowing how to respond at each stage is important in protecting your position and avoiding further issues.
If HMRC does not open an enquiry within the standard time limits, it may still raise a discovery assessment in certain circumstances.
Discovery assessments can be issued:
Our goal is to protect your position while making the process as straightforward as possible. We’ll represent you in all correspondence with HMRC, manage deadlines, and ensure your responses are accurate and well-presented.
We provide clear advice and hands-on support whether you're facing:
Our goal is to protect your position while making the process as straightforward as possible. We’ll represent you in all correspondence with HMRC, manage deadlines, and ensure your responses are accurate and well-presented.
A client of ours had been approached by HMRC enquiring into their Self-Assessment for the year ended 5 April 2022.
Our client has previously filed their 2021/22 themselves, with the help of another advisor, and it had come to light that there were various errors contained within the tax return.
We assisted our client with responding to HMRC by acting on their behalf during the enquiry process. We worked with the client to obtain all the relevant details and identify where there had been errors made on the initial submission. We helped our client perform correct calculations and to ensure the response to HMRC contained accurate figures. As the client had engaged us to assist with responding to HMRC, they were at ease that the response was handled professionally and this helps to show HMRC the client is co-operating to ensure their tax affairs are brought up to date.
Whilst there was a sum payable following submission of a response to HMRC, we managed to have HMRC agree to suspending all penalties applied in relation to the enquiry. This was a huge result for the client and saved him multiple thousands in penalties.
Do not ignore it. HMRC correspondence often includes deadlines, and failing to respond can lead to penalties or further action by HMRC. We can help you understand the letter and prepare an appropriate response.
A compliance check is just a broad term covering all HMRC enquiries. An enquiry is a formal investigation into a tax return that you have already submitted and is subject to specific time limits.
For Self‑Assessment tax returns, HMRC generally has 12 months from the filing date to open an enquiry (unless you filed late). Different rules apply for other taxes, and we can advise you on this.
Yes. HMRC can issue discovery assessments for earlier years if certain conditions are met, particularly where there has been careless or deliberate behaviour.
Yes. We regularly work alongside accountants and other professional advisers, providing specialist support where HMRC enquiries become complex or technical.
