In this section:
- Checks into your tax return
- Appeals against HM Revenue & Customs tax decisions
- Tax return deadlines and penalties
Checks into your tax return
HM Revenue & Customs (HMRC) sometimes checks to make sure you're paying the right tax at the right time - this doesn't mean you've done anything wrong. HMRC routinely checks a proportion of tax returns to make sure they're correct and will sometimes ask you for more information to explain your figures.
On this page:
- When to tell HMRC about errors
- What happens when a check starts
- Will you need to meet face to face?
- Information you'll be asked for
- Time limits for providing information
- Asking for a check to be stopped
- Possible outcomes of a check
- What to do if you disagree with a decision
- More useful links
When to tell HMRC about errors
If you've made an error on your tax return it's very important that you tell HMRC straight away. This may prevent a check being started. Even if a check has already started, you should tell HMRC about any errors right away to help put matters right quickly.
What happens when a check starts
HMRC will write to you and tell you:
- that a check is being started
- what is being checked, for example your tax return (or part of it) or a claim you've made
- the information that you need to provide
- when you need to provide it by
HMRC normally has 12 months from the date you sent in your tax return to tell you that they intend to start a check. They may have longer if you've amended your tax return, sent it in late or where the information you supplied was deliberately misleading.
Using a professional adviser
If you already have an accountant or other professional adviser, HMRC will write to them, at the same time that they write to you, to tell them about the check.
You can choose to appoint a professional adviser at any time during the check. You simply need to complete and return form 64-8 to give your adviser authority to speak to HMRC about your tax affairs.
Bear in mind that even if you have a professional adviser, you're personally responsible for your own tax affairs and the accuracy of all information supplied to HMRC.
Get form 64-8 to authorise your agent or adviser
Will you need to meet face to face?
Many straightforward checks are conducted by post or over the phone. But if there's a lot of information to discuss, HMRC may ask you to call in at your Tax Office instead.
If you're self-employed, HMRC may also visit you at your business premises.
You don't have to come to a meeting (or be there if HMRC visits your business premises) but it will help if you are - you'll be able to explain any points that you think HMRC has misunderstood. You can ask a friend, relative or your professional adviser to be there if you wish.
Information you'll be asked for
The information HMRC will ask you to provide will depend on what's being checked. You'll normally receive a letter or phone call telling you exactly what's needed.
HMRC will try to carry out all checks as quickly as possible and not inconvenience you too much.
You (or your accountant or adviser) should always be able to provide the information that your tax return was based on quickly and easily. Read the 'Record keeping' guides to make sure you're keeping the right information.
Record keeping - find out more
Time limits for providing information
HMRC will give you a reasonable amount of time to provide the information they need. You can help to end the check sooner by providing what they've asked for promptly or by letting them know as soon as possible if and why you can't.
If you don't provide the information HMRC may make a formal request. By law you'll then have to reply or face a penalty if you don't - so it's best if you can help as much as you can from the start.
Asking for a check to be stopped
You can ask HMRC to delay or postpone a check at any time, for example if:
- you're seriously ill
- someone close to you has died
If you think HMRC should stop the check altogether, write to your Tax Office and explain why. They may agree to stop the check. If they don't agree you may be able to challenge this decision (see the section 'What to do if you disagree with a decision' below).
Possible outcomes of a check
If nothing is wrong
You'll receive a letter telling you the check has finished. In this case there won't be any changes to your tax return or claim.
If you've paid too much tax
HMRC will change your tax return to reflect the correct figures and you'll get a repayment. In some cases you'll receive interest on the amount overpaid too.
If you have tax to pay
HMRC will tell you how much you have to pay and how it's been worked out.
You may also have to pay interest (if the tax should have been paid earlier) or a penalty. When HMRC works out a penalty, they look at many aspects of your behaviour, including:
- how deliberate the error was
- how helpful you've been in correcting the error
- how freely you've provided any missing information
If you owe only a small amount, HMRC will include the amount due on your next Self Assessment statement.
You may be asked to pay the amount in full direct to HMRC instead. If so, you'll usually be asked to pay within 30 days
If you can't pay the full amount straight away, you may be able to spread the payment by agreeing with HMRC that you can pay the tax back in instalments.
Make sure that you pay the tax due on time - if you pay late (and haven't agreed to pay by instalments) you may have to pay an additional surcharge on top of the tax due.
Read more about your Self Assessment statement
Download a factsheet showing how penalties are worked out (PDF 54K)
What to do if you disagree with a decision
Sometimes you may disagree with an HMRC decision - for example, you may disagree with the amount of penalty charged or feel you had a valid reason for asking for a check to be stopped.
If you wish to challenge the decision, you can appeal and ask for the decision to be reviewed by someone who has not been involved or by an independent tribunal.
How to appeal against an HMRC tax decision
