Receiving notice of a personal tax compliance check from HMRC can seem daunting, but with the right preparation, it doesn’t have to be overwhelming. In our spotlight guide, we outline what to expect during a compliance check, how to stay organised, and ways to manage the process smoothly.
HMRC may select your tax return for review for several reasons, including:
- Discrepancies between your tax return and HMRC’s records
- Missing or undeclared income from multiple sources
- A significant change in income from one year to the next
- Filing returns late on a regular basis
- Working in higher-risk industries (such as cash-based businesses)
- Random selection as part of routine investigations
If HMRC selects your return for a compliance check, you’ll be notified by letter. It’s important to respond promptly—usually within 30 days. If you’re unsure about any part of the request or the documents you need to provide, it’s wise to seek professional advice. In some cases, you can request an extension from HMRC if needed.
If HMRC finds any errors or missing information, they may ask you to amend your tax return and make additional tax payments on which interest and penalties may be imposed.
If you disagree with the outcome of the compliance check, you can challenge it within 30 days. You will need to provide additional documentation or evidence to support your case.
A compliance check is part of HMRC’s broader effort to ensure fairness in the tax system. Most checks can be resolved quickly if you:
- Maintain accurate financial records
- Submit correct tax returns
- Respond promptly to HMRC requests
If you’ve received a letter from HMRC asking for more information, our experienced team is ready to assist with advice, document preparation, and representation. Call us at 01223 810100 for support.
