Overview
Visits to inspect the premises, assets and records of a business has always been an important part of the work of HMRC compliance officers.
The new inspection powers legislation governs when an inspection may be carried out, what you can inspect, the notice that must be given and the conduct of inspections visits from 1 April 2009.
Any officer of Revenue and Customs can use these powers. However, in some circumstances, for example, where less than 7 days notice of the inspection is given, the agreement of an authorised officer is required.
- Inspections can be done at business premises where they are reasonably required to check a person's tax position.
- Inspections can also be done at premises used in connection with taxable supplies or the acquisition of goods from other member states when the goods are believed to be on the premises.
- Premises that are used as a fiscal warehouse can be inspected.
- Inspections must be a reasonable and proportionate way to address identified risks.
- No part of any premises that are used solely as a dwelling may be entered or inspected.
- Taxpayers are sometimes visited at their business premises or home because it is convenient for them to have their records examined there, even though the check could be done by correspondence. In these cases, inspection powers will not be used and HMRC must be able to demonstrate that the visit is at the taxpayer's request.