HMRC enquiry & tax-problem support in West London
HMRC has written to you. Understand the letter before you answer it.
SV&Co helps individuals, landlords, directors and small businesses understand HMRC queries, compliance checks, requests for records, VAT/PAYE checks, undeclared-income issues and tax decisions. We start by identifying exactly what HMRC is asking and the deadline attached to it.
Start with the letter
What has HMRC actually sent you?
The right response depends on whether this is an informal query, a compliance check, a formal information notice, a penalty decision or something more serious.
HMRC says it is checking my tax return.
A compliance check can be narrow or broad. Identify the tax, period and issue before responding.
Understand the checkHMRC wants documents or information.
Informal requests and formal information notices have different consequences and rights.
Review the requestHMRC wants bank statements.
Bank information can be relevant, but the request should be understood in the context of the tax risk being checked.
See how to prepareI have income I did not declare.
Taking advice before HMRC discovers the issue can affect the disclosure route and penalty position.
Review disclosureI disagree with a penalty or tax decision.
Appeal deadlines can be short. Preserve the deadline first, then build the evidence.
Review appealFirst response
Five things to do before writing a long reply.
Verify
If anything looks unusual, use GOV.UK's genuine-contact guidance. HMRC maintains current lists of letters, calls, emails and texts.
Deadline
Write down the response or appeal date and HMRC reference. Do not rely on memory.
Scope
Identify the tax, year/period, return and exact figures or behaviour being checked.
Evidence
Gather the return, bookkeeping, bank, invoices, payroll or other genuine records behind the issue.
Response
Answer the actual request in a controlled, consistent way. Do not fill gaps with guesses.
HMRC's own guidance says that while a compliance check is open you should continue filing current tax returns and paying taxes due. An enquiry into one period is not a reason to stop normal compliance.
Types of HMRC problem
Not every HMRC letter means the same thing.
Discrepancy or supporting evidence
HMRC may be checking one figure, claim, repayment or transaction. The quickest route is usually to reconcile that figure to the underlying records and explain it clearly.
Formal tax enquiry
HMRC can check Self Assessment, Company Tax, PAYE, VAT and other tax positions. Checks range from short factual enquiries to detailed reviews of financial affairs.
Information notice
A formal notice can require statutory records and other information or documents reasonably required to check the tax position. Ignoring it can lead to penalties.
Voluntary disclosure
Where income or gains were not declared, HMRC has formal disclosure routes. The appropriate route depends on the tax, facts and whether HMRC has already opened a check.
Penalty / assessment
If HMRC has made a decision you disagree with, identify the appeal route and deadline. Many penalty appeals have a 30-day window, but the notice itself must be checked.
Code of Practice 9 / CDF
COP9 is used in selected cases where HMRC suspects tax fraud. It has a 60-day response process and should not be answered as an ordinary tax enquiry.
Information & documents
Understand whether HMRC is asking informally or using a formal information notice.
HMRC can ask for information and documents reasonably required to check a person's tax position. A formal Schedule 36 taxpayer notice can include statutory records and other reasonably required information/documents, subject to legal restrictions.
What a good response looks like
- It identifies the exact request.
- It uses the original records where available.
- It explains reconciliations rather than sending unexplained totals.
- It identifies genuinely missing documents honestly.
- It keeps copies of everything supplied.
- It is consistent with previous returns and correspondence, or clearly explains a correction.
What needs advice
- A request that appears much wider than the stated tax risk.
- Documents you do not possess or cannot obtain.
- Legally privileged or otherwise restricted material.
- A formal notice where you believe appeal rights may apply.
- Questions that appear to be moving toward deliberate behaviour or fraud.
- Deadlines you genuinely cannot meet.
HMRC's own Compliance Handbook says taxpayer notices are subject to restrictions, including protections for legally privileged material and limits around certain documents. Whether a restriction or appeal applies is fact-specific, so do not simply refuse a request without taking advice.
Bank statements
HMRC can ask about bank transactions, but statements should be reviewed in context before they are sent.
HMRC's internal guidance says bank transaction or statement information may be needed during a compliance check. HMRC generally seeks the information from the taxpayer first and can, in appropriate circumstances, seek it from the bank.
Before supplying statements
- Identify which accounts and dates HMRC requested.
- Reconcile business receipts to sales records.
- Identify transfers between your own accounts so they are not mistaken for new income.
- Separate loans, capital introduced, refunds and other non-trading receipts.
- Prepare explanations for unusual large credits based on genuine evidence.
Do not manufacture a story
If you cannot remember what a transaction was, say that records are being checked. A clear “we are obtaining evidence” is safer than creating an explanation that later proves wrong.
Where records are genuinely missing, reconstruct the position from credible third-party evidence and explain the basis used.
Undeclared income
Finding an old error yourself is different from waiting for HMRC to find it.
HMRC's current voluntary-disclosure guidance says taxpayers who know they owe tax should notify HMRC as soon as they know. The Digital Disclosure Service is one route; landlords can also have access to the Let Property Campaign for qualifying residential rental-income disclosures.
Examples we may need to review
- Rental income not previously reported.
- Self-employment or online-platform income omitted from returns.
- Company income posted outside the accounts.
- VAT errors spanning older periods.
- Capital gains not reported.
- Earlier returns where expenses or income were materially wrong.
The disclosure calculation
The work is not simply “tell HMRC the missing income”. A proper disclosure can require the underlying tax, interest, behaviour, penalty range, relevant years, formal offer and payment position to be worked out.
The correct time period can depend on whether the original error was reasonable, careless or deliberate and whether there was a failure to notify.
HMRC's Let Property Campaign currently provides a dedicated disclosure route for individual landlords with undeclared residential rental income. The exact years and penalties depend on the facts, so the calculation should be prepared before submitting the disclosure.
Code of Practice 9
COP9 means HMRC suspects fraud. Treat the 60-day decision seriously.
Under COP9, HMRC offers the Contractual Disclosure Facility in selected suspected-fraud cases. Accepting the CDF involves making a complete disclosure of deliberate behaviour causing a tax loss. HMRC says that in return it will not open a criminal investigation into the disclosed behaviour, provided the CDF terms are met.
HMRC itself strongly advises independent professional advice before responding to a CDF offer. If a client brings SV&Co a COP9 letter, our first job is to identify the seriousness of the case and ensure appropriate specialist tax-investigation or legal representation is involved where required. We do not treat COP9 as a routine accounts amendment.
Penalties, assessments & disputes
If you disagree, protect the deadline before arguing the whole case.
HMRC decisions and penalties have specific review and appeal routes. GOV.UK says penalty appeals are usually made within 30 days of the penalty decision, although the exact notice and tax type must be checked.
Internal review / appeal
Some decisions can be challenged directly with HMRC and may be reviewed by another HMRC officer. The letter should state the route and deadline.
Tribunal
Where the legislation gives a right of appeal, unresolved disputes can potentially proceed to the independent tax tribunal. Not every information requirement has the same appeal rights.
ADR
HMRC says Alternative Dispute Resolution can be considered during a compliance check where there is disagreement about decisions or what is being checked. Suitability depends on the dispute.
How SV&Co can help
We start by controlling the facts and correspondence.
| Stage | What we can do | What the client needs to do |
|---|---|---|
| Initial review | Read the complete HMRC contact, identify tax/period/deadline, compare it with the return/accounts and flag urgency. | Send the whole letter and do not omit uncomfortable facts. |
| Records | Reconcile bookkeeping, bank, invoices, payroll, VAT or tax-return figures and identify gaps. | Provide genuine source records and explain what is missing. |
| Response | Draft a factual response, schedules and calculations and, where authorised, correspond with HMRC. | Confirm facts and approve information supplied in your name. |
| Correction | Quantify tax, interest and likely penalty issues where an error is found and identify the appropriate correction/disclosure route. | Provide full historic information rather than limiting the review to one known error. |
| Specialist escalation | Recognise when COP9, suspected fraud, complex litigation or another specialist issue needs additional expert representation. | Engage the recommended specialist promptly where required. |
HMRC letter triage tools
Work out what needs attention before you start replying.
What Kind of HMRC Contact Is This?
This does not diagnose a legal position. It helps you identify the right first response.
Records Preparation Checker
Tick what HMRC's question appears to involve.
HMRC enquiry FAQs
Questions people ask as soon as the letter arrives.
Does an HMRC compliance check mean HMRC thinks I committed fraud?
No. HMRC compliance checks are used to check whether the right amount of tax has been paid and the correct reliefs claimed. They range from simple factual checks to detailed investigations. COP9 is a different, specialist process used in selected cases where HMRC suspects fraud.
Can HMRC ask for my bank statements?
Yes, where bank information is reasonably required for checking the tax position. HMRC normally seeks information from the taxpayer first and has powers to seek information from banks in appropriate circumstances.
Should I send HMRC everything I have?
Not blindly. You should comply with valid requests and notices, but first identify what was asked for, the period and the legal basis. A well-organised response is normally better than sending a large unstructured bundle without explanation.
What if I cannot find a document HMRC requested?
Explain the position honestly and identify whether the document can be obtained from a third party or reconstructed from other genuine evidence. HMRC's own guidance recognises that some requested documents may not exist or may be unavailable.
Can an accountant deal with HMRC for me?
Yes, where the accountant has the appropriate formal or temporary authorisation. HMRC can then normally correspond with the authorised adviser on the client's behalf, although the taxpayer remains responsible for their tax affairs and the accuracy of information supplied.
What if I know an old return is wrong but HMRC has not contacted me?
Do not wait simply because HMRC has not yet found it. HMRC provides voluntary-disclosure routes for unpaid tax. Which route is appropriate depends on the tax and facts, and the historic tax, interest and potential penalties should be calculated properly.
Reviewed by
Sandip Vadher, PhD FCCA
Founder of SV&Co Accountancy. Fellow Chartered Certified Accountant with more than 20 years of finance and accountancy experience.
Received an HMRC letter?
Send the complete letter before drafting the reply.
We can identify the issue, deadline and records needed, then tell you whether this is routine compliance work or something that needs more specialist representation.
All pages of the HMRC letter, reference number, response date, tax/period involved, the return or accounts being checked, previous HMRC correspondence and the records specifically requested.
Ask for an HMRC letter reviewThis draft was checked against current GOV.UK/HMRC guidance on compliance checks, information notices, bank-information powers, penalties and appeals, voluntary disclosure, the Let Property Campaign, genuine HMRC contacts and Code of Practice 9. This page is general information and does not replace case-specific tax or legal advice.