HMRC Compliance Checks
Has HMRC opened a compliance check into your affairs?
You don’t have to handle this alone – and you shouldn’t try to.
If HMRC has written to tell you they’re carrying out a compliance check (sometimes called an “enquiry”), it means they want to verify that a tax return, claim, or set of accounts is accurate. This is more formal than a nudge letter – HMRC has decided your case warrants a closer look, and how you respond from this point will shape the outcome.
What Is an HMRC Compliance Check?
- A compliance check is HMRC’s formal process for reviewing your tax affairs. It can cover a single tax return or several years at once, and can relate to Self-Assessment, Corporation Tax, VAT, PAYE, or Capital Gains Tax.
- Compliance checks are triggered by:
- Inconsistencies between your return and third-party data (banks, Land Registry, online platforms, overseas tax authorities)
- Figures that fall outside what HMRC expects for your trade or sector
- Random selection as part of HMRC’s risk-based sampling
- Information received following a nudge letter that wasn’t satisfactorily resolved
What Happens During a Compliance Check
- HMRC will typically request specific records, ask questions about entries on your return, and may want to interview you or visit your premises. The check can be narrow (a single figure) or “full” (your entire tax position for the period). Throughout the process you have rights – including the right to representation, the right to know why specific information is being requested, and (in many cases) the right to appeal information notices you consider unreasonable.
You have rights – we make sure HMRC respects them.
How We Help
We act as your point of contact
We deal with HMRC on your behalf, so you’re not handling pressured phone calls or letters alone.
We review requests carefully
We review what’s actually being asked for and push back on anything excessive or out of scope.
We prepare professional responses
We prepare your records and responses to a professional standard before anything is submitted.
We identify disclosure needs early
We identify early whether any disclosure is needed, and manage that process alongside the check.
We negotiate on penalties and settlements
We negotiate on penalties and settlement terms if errors are confirmed.
We keep the check moving
We keep the check moving so it doesn’t drag on longer than necessary.
Already mid-way through a check and not sure if you’re being treated fairly? Speak to an Expert before your next response.
Why Act Quickly
Compliance checks that drag on, or where taxpayer response is hampered without professional input, tend to end with higher penalties and more scrutiny – HMRC reads disorganised responses as a signal to dig deeper. Getting advice at the outset, even just to plan your response, almost always leads to a faster and less costly resolution.
Don’t delay – get expert help today.
If you’ve received a compliance check letter, contact our Cardiff office today for a free, no-obligation review of your position.
- 100% Confidential
- No Obligation
- Experienced Specialists
FAQs
1. Will a compliance check always result in a penalty?
No. Many checks close with no changes once HMRC has the information it needs. Penalties only arise where an error is found, and even then, cooperation and an organised response typically reduce them.
2. Can I refuse to provide information HMRC has asked for?
Not generally, but HMRC’s powers aren’t unlimited – certain requests can be challenged. We review every information notice before you respond.
3. How long does a compliance check take?
This varies from a few weeks for a narrow query to over a year for a full enquiry into a complex business. Responding promptly and clearly at each stage is the biggest factor in keeping it short.
Need help with an HMRC compliance check?
Book an appointment with our specialists today.
