Summary

Summary

That completes our look at Inspection Powers.

The new powers of inspection in Schedule 36 of Finance Act 2008 will take effect from 1 April 2009 and these are the powers you must use from this date. However, you cannot use them until you have successfully completed the training.

• The new powers:
  • can be used by officers of HMRC although the authority of an authorised officer will be required for certain inspections.
  • extend our statutory right to inspect business premises and the assets and documents at those premises from the old Pay As You Earn, Construction Industry Scheme and Value Added Tax provisions to Income Tax, Capital Gains Tax, Value Added Tax and Corporation Tax.
• They also incorporate safeguards in keeping with the Human Rights Act. Whilst under the terms of Schedule 36, as is the situation currently, we may have a right to inspect; it does not confer a right to force entry in civil tax matters. New factsheets ensure that both taxpayers and Officers know their respective rights and responsibilities.
• HMRC's interpretation of the new powers is set out in the Compliance Handbook where detailed guidance can be found.
• The new powers specify that any inspection must be reasonably required to check a person's tax position. They can be used by officers of HMRC although the authority of an authorised officer will be required for all unannounced visits and where documents need to be examined at the premises that are more than six years old.