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.
Do not panic. Never ignore it. Avoid guessing.
Keep the complete letter, note the response date, check the records behind the issue and respond to the question HMRC actually asked.
First response
Five things to do before writing a long reply.
1
Verify
If anything looks unusual, use GOV.UK’s genuine-contact guidance. HMRC maintains current lists of letters, calls, emails and texts.
2
Deadline
Write down the response or appeal date and HMRC reference. Do not rely on memory.
3
Scope
Identify the tax, year/period, return and exact figures or behaviour being checked.
4
Evidence
Gather the return, bookkeeping, bank, invoices, payroll or other genuine records behind the issue.
5
Response
Answer the actual request in a controlled, consistent way. Do not fill gaps with guesses.
Keep current compliance running.
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.
Routine / targeted
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.
Compliance check
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.
Formal powers
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.
Correction
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.
Time-sensitive
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.
Specialist high-risk
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.
- Where possible, it uses the original records.
- The response explains reconciliations rather than sending unexplained totals.
- It identifies genuinely missing documents honestly.
- Copies of everything supplied remain on file.
- The information stays 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.
Formal notices are not unlimited.
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.
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.
Landlord example
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.
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.
Useful information to send us
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.
Practical help with HMRC enquiries and tax problems
First, we establish what HMRC has requested and the deadline for replying. Next, we compare the request with your returns, accounts and supporting records. Then, we identify missing information and explain the options in plain English. As a result, you can respond with a clear and organised case. However, do not ignore HMRC letters or provide figures that you cannot support. Finally, contact SV&Co promptly if you need professional help with an enquiry, penalty or unpaid tax issue.
In addition, we keep a clear record of the information supplied to HMRC. For example, we reconcile explanations with accounts, returns and bank evidence. Therefore, your response remains consistent across each document. Also, we identify any deadlines that need immediate action. Because every enquiry differs, we tailor the work to the specific letter. Meanwhile, you receive updates on progress and outstanding information. If HMRC raises another question, we review it promptly. Afterwards, we explain the outcome and any further steps. Consequently, you can make informed decisions. In summary, early and organised action gives you the best position.
In addition, keep each relevant letter and attachment together. For example, note when HMRC sent the request and when a reply is due. Therefore, important dates remain clear. Also, retain the records that support each figure. If information changes, tell us promptly. Afterwards, we can update the response where necessary. Finally, keep the agreed outcome with your tax records.
HMRC enquiries and tax problems require clear records, prompt responses and a practical assessment of deadlines, evidence and payment options. SV&Co helps clients understand the next step.