HMRC enquiry and investigation help for individuals and families

Do not ignore it and do not rush a reply. Note the date, the tax year, the reference and the deadline. Then work out whether it is a routine query, a formal enquiry into your return, or an invitation to review your position. Send us the letter and we will explain it, check the figures and reply on your behalf. A measured first response protects your position.

It is a formal check under which HMRC can ask about anything in your return, a single entry or the whole return. HMRC must open it within 12 months of the day you filed on time. It ends when HMRC issues a closure notice with its conclusions, which you can appeal. Most enquiries are opened because something looks inconsistent, and many end with no change.

A nudge letter is a prompt from HMRC, based on data it holds, inviting you to check whether you have declared everything. It is not a formal enquiry and does not accuse you of anything. HMRC has used them for overseas assets, crypto, property income and other areas. A careful, evidence-based response is better than ignoring it or admitting to things you have not checked.

The standard time limit is four years from the end of the tax year. It is six years if the error was careless, and 20 years if it was deliberate. For income tax, capital gains tax and inheritance tax involving offshore matters, HMRC generally has 12 years even without carelessness. These limits decide how many years a disclosure needs to cover, so we establish them early.

For inaccuracies, the penalty is a percentage of the extra tax: up to 30% for carelessness, 70% for deliberate but not concealed, and 100% for deliberate and concealed. The actual figure is reduced for the quality and timing of disclosure, and an unprompted disclosure of a careless error can reduce it to nil. Offshore matters carry higher maximum rates, so the facts matter greatly.

It is HMRC's route for voluntarily disclosing UK tax owed on offshore income, assets or activity. You notify HMRC online of your intention, then have 90 days to calculate the liabilities and make the disclosure, with up to 180 days in complex cases. The full amount of tax, interest and penalties is expected to be paid with the disclosure. It does not protect against prosecution for deliberate wrongdoing.

COP9, Code of Practice 9, is HMRC's civil fraud procedure. It is used where HMRC suspects tax fraud but has not started a criminal investigation. You are offered the Contractual Disclosure Facility, with 60 days to accept. If you do, you make a full disclosure and HMRC agrees not to investigate the disclosed conduct criminally. It is serious: get advice before responding, and do not delay.

If you know of an error or omission, usually yes, because disclosing before HMRC approaches you normally leads to lower penalties. The right route depends on the facts: a simple amendment, a letter, the Worldwide Disclosure Facility for offshore matters, or the Contractual Disclosure Facility where deliberate behaviour is involved. We assess exposure first so that the disclosure is complete and correct.

Yes. HMRC can query inheritance tax accounts, valuations and claims for reliefs, and may look at gifts made in the seven years before death. Missing records and unreported lifetime gifts cause most problems. The same time limits apply as for other taxes, with 12 years for certain offshore matters. We help executors and families respond and, where possible, tidy up before a death.

HMRC receives data from many countries about accounts held by UK residents, and uses it to check that interest, income and gains have been reported. The enquiry may be a polite query or the start of a wider check. We establish whether the income was declared, whether any tax was due, and what the disclosure and penalty position is before responding.

Yes. HMRC can ask whether you were really non-resident, particularly where you kept a UK home, family or work ties, or where large gains arose around departure. It may compare your travel records with your claimed days. We rebuild the day count and ties, test the residence position, and present the evidence in an organised way. See our Residency page for the underlying rules.

Not necessarily. Most enquiries run by letter. If a meeting is requested, we prepare you, attend with you and can usually speak for you on technical points. A meeting is normally voluntary, but declining can lead HMRC to use its formal information powers, and cooperation counts when penalties are set. We decide with you what is sensible, based on what HMRC is looking for.

HMRC has statutory powers to request documents and information from taxpayers and, in some cases, from third parties such as banks. It generally asks you first. Withholding or delaying information tends to raise concerns and can lead to penalties. We review what is requested, challenge anything excessive, and make sure what you do provide is accurate and complete.

Yes. Once you authorise us as your agent, we handle correspondence, calls and meetings. You stay informed and approve anything that is sent. Your contact is Omar Aswat, a Chartered Tax Adviser, rather than a call centre. We also explain what HMRC's questions are really aiming at, so you understand where you stand throughout.

HMRC will issue a closure notice or assessment setting out the tax, interest and any penalty. You can agree, negotiate or appeal, usually within 30 days, and ask for an independent review or the tax tribunal if you cannot agree. We examine the technical case and the figures before you decide.

Keep clean records, report all income and gains, explain unusual items in the white space on your return, and keep evidence of residence and valuations. Check any third-party data, such as bank interest or exchange statements, before you file. A review of your return before submission, which is part of our Self-Assessment service, is the best protection.