This document is only for non-business customers or customers who are contacting HMRC with non-business queries about HMRC's interpretation of recent tax legislation, and advisors acting on their behalf, and tells you about the service offered by HMRC to these customers. You can find guidance on other help and advice available from HMRC on our Clearances and Approvals page (see the link below)
Before you write to HMRC you should first go to the Library section of their web site and look at the online guidance to see if this answers your question.
On this page:
HMRC's interpretation of recent tax legislation
What information you need to provide
When you can rely on information or advice provided by HMRC
Where you should send your application
How HMRC's advice affects interest and penalties
What you can do if you disagree
If you are a non-business customer or have a query which is not about a business activity and you:
You must have fully considered the relevant guidance and/ or contacted the relevant helpline.
You can ask about a transaction:
HMRC will tell you how they interpret recently passed tax legislation.
HMRC generally interpret recently passed tax legislation to mean legislation passed in the last four years. However they will give a view on legislation older than this where the subject or circumstances of your query are not covered in their published guidance and you have uncertainty about the right tax treatment.
If your query is about a matter other than the interpretation of recent tax legislation HMRC may still provide a suitable response, such as pointing you to the relevant online guidance.
If you ask for a view and HMRC do not provide it, they will tell you why.
Listed below are some of the reasons why HMRC might not give advice under this service:
When you write to HMRC you should use the checklist at Annex A below to help you decide what information is relevant to your application. HMRC ask for this information to ensure that they understand the background to your question and where your uncertainty lies. This helps them to process your application quickly. HMRC does not expect that all of the information on the checklist will be available and relevant for every CAP 1 application. HMRC ask for details of the guidance you have looked at as this helps them to identify where there may be gaps and, if there are, helps HMRC to fix things for the future.
Please head your letter - CAP 1: Service for non-business customers (this helps HMRC to identify your application and deal with it more quickly)
When you write to HMRC you must be satisfied that the information you give is, to the best of your knowledge and belief, accurate and correct.
Provided this is the case, and you carry out the proposed transactions exactly as you describe them, you will generally be able to rely on HMRC's response. For more information, see the link below
When you can rely on information or advice provided by HM Revenue & Customs (HMRC)
There is no single point of contact to which applications can be sent given the very wide range of tax regimes covered by this service and the number of applications received.
If you have an existing point of contact within HMRC, for example a Customer Manager or your local tax office, or are already in contact with HMRC on the subject of your query you should address your application to the contact address with which you have been provided.
In all other cases, you can find contact details and postal addresses for specialist departments or any other part of HMRC (see the link below).
HMRC will usually reply within 30 days. Where difficult or complicated issues are involved it may take them longer to reply. If this is the case, HMRC will acknowledge your request and tell you when you can expect a full reply.
Sometimes HMRC may need to ask you to provide more information before they can send you a full reply. If so, they will suspend the handling time for your application until you are able to provide them with the information they have requested. HMRC may wish to contact you by telephone for clarification, and it helps them if you can provide a contact number.
HMRC's advice does not affect the date by which you have to pay your tax and you should continue to pay your tax and send HMRC any returns on time. You may have to pay interest and late payment penalties on any tax that you pay late, for whatever reason.
If you have asked for advice after a transaction has taken place, but not received the advice by the time your return is due to be submitted, then you should still send your completed return in on time. When you receive HMRC's advice you can, if necessary, amend your tax return or make a disclosure as long as you are within the normal time limits to do so. If you send HMRC your return on time you will not be liable to penalties for failing to make a return.
If you disagree with HMRC's view of your transaction and complete your return in accordance with your own view of the proper tax treatment, then you may not have paid the right amount of tax at the right time. In such circumstances, if your return contains a careless or deliberate error which results in a loss of tax or an inflated claim to repayment of tax, then you will be liable to penalties.
HMRC aim to give you a clear reply to your questions; they recognise that sometimes you may not agree with what they say, or you may not be happy with the service they have provided.
Find out what to do if you want to complain about HMRC's service
There is no general right of appeal against advice given by HMRC except where rights to appeal are set out in statute. Rather, appeal rights are usually against decisions HMRC take, such as issuing an assessment for underpaid tax or a penalty
However, some VAT related decisions are classed as 'appealable decisions' by statute. The letter HMRC send you will explain whether you are able to appeal and tell you what to do if you disagree with a VAT decision.
