The power to visit business premises and check assets and records
FA08 allows an authorised officer of HMRC to enter business premises and inspect the premises, business assets and statutory records.
If an information notice has been issued, the documents required in that notice can be inspected at the same time.
These inspections:
- must only be undertaken where it is reasonably required to establish the tax position
- will normally be by prior arrangement, the date and time being convenient to the taxpayer
FA08 also allows any officer to enter any premises they believe are to be used in connection with taxable supplies of goods or taxable acquisition of goods from Member States, and such goods are on the premises.
There is no right of appeal against an inspection notice but the occupier can refuse entry and prevent the inspection from being completed.
The occupier can be penalised for such obstruction, but only if the inspection has been approved by the First-tier Tribunal.
There may be occasions when a pre-arranged visit will be inappropriate.
For example, where there is a strong risk that the taxpayer would move the business or remove stock or other assets.
If this was the case, an unannounced visit may be undertaken subject to prior agreement by an authorised officer.
