New compliance checks - factsheets

HM Revenue & Customs (HMRC) have published a series of factsheets to help customers understand the new framework for compliance checks. A compliance check is how HMRC checks that your tax is correct.

These factsheets explain each possible step of a compliance check. During a check an HMRC officer may give you one or more of these factsheets to help you understand what is happening and what your rights are. The HMRC officer will also give you their contact details so you can ask questions about the check.

The factsheets

• CC/FS1 Compliance checks - general information (PDF 47K)
• CC/LBFS1 Compliance checks – general information for large businesses (PDF 54K)
• CC/FS2 Compliance checks - requests for information and documents (PDF 59K)
• CC/FS3 Compliance checks - visits - pre-arranged (PDF 61K)
• CC/FS4 Compliance checks - visits - unannounced (PDF 66K)
• CC/FS5 Compliance checks - visits - unannounced - tribunal approved (PDF 62K)
• CC/FS6 Compliance checks - What happens when we find something wrong (PDF 64K)
• CC/FS7 Compliance checks - Penalties for errors in returns or documents (PDF 78K)
• CC/FS8T Compliance checks - Help and advice (PDF 64K)
• CC/FS9 Compliance checks - Human Rights Act Factsheet (PDF 70K)
• CC/FS10 Compliance checks - Suspending penalties for careless errors in returns or documents (PDF 54K)
• CC/FS 11 Compliance checks - Penalties for failure to notify (PDF 69K)
• CC/FS 12 Compliance checks - Penalties for VAT and Excise wrongdoing (PDF 398K)
• CC/FS 13 Compliance checks - Publishing details of deliberate defaulters (PDF 70K)
• CC/FS 14 Compliance checks - Managing Deliberate Defaulters (PDF 44K)
• CC/FS 15 Compliance checks - Self Assessment and old penalty rules (PDF 565K)
• CC/FS 16 Compliance checks - Excise visits (PDF 43K)

 

You may also find HMRC 1 HM Revenue & Customs decisions - what to do if you disagree (PDF 32K) useful.

Compliance checks

HMRC has one set of powers for most taxes governing how HMRC:

• visit business premises to inspect the premises, assets and records
• ask tax payers and third parties for information and documents

The new measures also provide:

• new time limits for assessment and claims
• important safeguards for customers

The compliance checks legislation applies to:

From 1 April 2009	From 1 April 2010
Capital Gains Tax the Construction Industry Scheme Corporation Tax Income Tax PAYE VAT	Aggregates Levy Climate Change Levy Inheritance Tax Insurance Premium Tax Landfill Tax Petroleum Revenue Tax Stamp Duty Land Tax Stamp Duty Reserve Tax

New penalties

There are uniform penalties across most taxes including:

• an inaccuracy penalty for inaccurate tax documents and returns - see list of taxes
• a failure to notify penalty when people don't tell HMRC about a relevant obligation at the correct time, for example, to register for a tax - see list of taxes
• a new VAT and Excise wrongdoing penalty

Publishing details of deliberate defaulters

Under strictly controlled circumstances HMRC can publish the details of taxpayers who are penalised for deliberately evading more than £25,000 of tax.

Managing deliberate defaulters

This programme involves closer monitoring of the tax affairs of deliberate evaders for a period of up to 5 years.

For more information go to the Managing deliberate defaulter factsheet (PDF 44K)

More information

The guidance for compliance checks, new penalties and deliberate defaulters is in the Compliance Handbook.

Details of what each factsheet covers and when it will be issued is explained in the Revenue & Customs Brief 36/10.