HM Revenue & Customs investigations
The following article describes what you must do if your tax affairs are investigated by HM Revenue & Customs.
Time limits
HM Revenue & Customs has twelve months from the date your tax return is due to be filed to enquire into your Self-Assessment Tax Return (e.g. for the year ended 5th April 2007, they must inform you by 31 January 2008).
If you send your return in late (i.e. after 31 January) they will have between 12 and 15 months from the date they received it to open an enquiry.
Informing you
If they start enquiries into your return they will tell you in writing. They will also write to your tax adviser if you have one. When the enquiry is finished they'll write to you again, telling you of their conclusions. They will not write, to tell you, if they are not going to enquire into your return.
Reason to enquire
Most enquiries will be made on the basis that there is a risk that something might be wrong. A minority of cases will also be randomly selected for enquiry. The date of submission of a tax return, or whether you self-calculate or not, will have no affect on whether your return is taken up for enquiry.
Some returns will be randomly selected which will be reviewed for possible enquiry. Some of the returns selected in this way will not result in an enquiry because they can check the entries in the return using the information already in their possession.
They compare information on the tax return with information they get from elsewhere such as employers, banks and building societies. If they find any discrepancies they may want to enquire into your return. But you are responsible for making sure you enter the right information on your return.
Getting help
If HM Revenue & Customs opens up an enquiry into your tax affairs, you should consider enlisting the services of a tax adviser. Most are experienced in dealing with enquiries by HM Revenue & Customs and will be able to offer some useful advice.
This page was last reviewed on 03 April 2006. The information may not reflect changes in legislation made after this date.
This is only a guide to your tax position and should not be relied on in place of professional accounting or tax advice. Any calculated figures are illustrative and are based on the data you provided.
