When we open an enquiry we may want to:
Our letter to you at the start of our enquiry will tell you what areas of your return we are looking at.
Here are some examples of the types of enquiry we carry out.
Example 1 - enquiries into the whole return of a self-employed customer
Example 2 - enquiries into one or more separate items on a return
Example 3 - enquiries into claims that are not in a tax return
These are not the only types of enquiry we do. For example, we may enquire into the whole return of a person who is not self-employed.
Enquiries into the whole return of a self-employed customer
In order to see whether your return is correct and complete, if you are self-employed (or a partner in a business), we will need to look at the records of the business. We will usually also want to look at the rest of the return because your overall financial situation may be linked to your self-employment or business. Sometimes the profit of a business may have an effect on other areas of your return such as savings and investments.
You will be told about an enquiry in an opening letter
The person that writes to you about the enquiry (an officer) will be checking all the entries on your return including for example, turnover, profit, expenses, capital allowances and bank interest. You will be asked to provide all your business books and records to show how you have arrived at the figures on your return.
If the officer has examined your business records or other documents you have supplied and there are further queries, a meeting is usually the best way to sort out those queries. The officer will discuss with you what he or she has found during the enquiry. There is no assumption when we open an enquiry that something is wrong or that we will find anything wrong.
When the officer does find something that needs changing this can lead to reduction or an increase in your tax. The officer is trying to make sure the return is correct and will make any changes in your favour as well as any changes that mean you owe more tax.
We will try to agree with you what the figures on the return should be. If we cannot agree we will tell you what changes we think are needed.
When the enquiry is completed we may send you a letter closing the enquiry, telling you our conclusions and making any changes that are needed to the return. For further information go to At the end of the enquiry
If you do not agree with the officer you can appeal against our conclusions or against any changes we have made to your return.
At the end of some enquiries we may agree a contract settlement with you.
Enquiries into one or more separate items on a return
When we need to check an entry on your return by asking for further information we must open an enquiry. We will send you a letter to tell you we are opening an enquiry.
The letter will tell you that we are concentrating on one or more particular items in your return. If we tell you this it means we are not opening an enquiry to look at your whole return. Sometimes though we might find that by enquiring in to an item on your return we discover that our enquiries will have to cover all your return.
Typical queries would include a request for receipts to support a particular expenses claim or asking how you had arrived at an estimated figure.
We may also check if a claim for a tax allowance or a relief is properly due.
These enquiries are normally closed by a closure notice and you have the right of appeal. See At the end of the enquiry for more information
Enquiries into claims that are not in a tax return
Some claims are made on their own and not in a tax return. This usually happens because you do not receive a tax return (for example, your tax is deducted from your earnings) but you want to claim a tax relief or allowance.
We can enquire into a claim to check that it is correct. You will receive an opening letter telling you about the enquiry and asking for any information or documents we need. We follow the same rules and procedures as for any other enquiry.
These enquiries are normally closed by a closure notice and you have the right of appeal. See At the end of the enquiry for more information.
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