Appeals, penalties and tax enquiries
In this section:
- Enquiries into tax returns
- Appeals against HM Revenue & Customs decisions
- Tax return deadlines and penalties
Enquiries into tax returns
When we start an enquiry it doesn't mean we think you've done anything wrong. We routinely check a proportion of tax returns to make sure they're correct, and will sometimes need more information to understand the figures. We also randomly select tax returns for enquiry to ensure the system is operating fairly.
On this page:
- The start of the enquiry
- Information you'll need to supply
- Where do enquiries take place?
- Possible outcomes of a tax enquiry
- Your right to appeal or end an enquiry
- Timing and conduct of enquiries
The start of the enquiry
We will tell you (and your professional adviser if you have one) in writing:
- that we intend to start an enquiry
- whether we're looking at the whole of your tax return, just one or more specific areas or at a claim you made outside the tax return
- what information we need from you
- the deadline for your reply
- your rights and responsibilities
Using a professional adviser
You can choose at any time during the enquiry to be professionally represented. You simply need to complete and return form 64-8 to confirm that your adviser has authority to speak to us about your tax affairs.
Read form 64-8 Authorising your agent
Bear in mind that even if you have a professional agent or adviser, you are personally responsible for your own tax affairs and the accuracy of all information supplied to us.
Information you'll need to supply
The information you'll need to supply will depend on the nature of the enquiry, but you (or your agent or adviser) should be able to provide any information on which your tax return was based quickly and easily. Read the 'Record keeping' (individuals and directors) guide to find out what records you should be keeping.
Record keeping (individuals and directors) - find out more
Time limits for supplying information
You'll normally be given 30 days to provide any information, but we will let you have more time if this seems reasonable.
Full enquiries
In a few cases we may decide to conduct an extensive examination of all areas of your tax affairs. These fuller enquiries involve an in-depth review of the records on which your tax return was based including, if relevant, your business records.
Full enquiries and how we conduct them
Where do enquiries take place?
Many routine enquiries are conducted entirely by post. But if there's a lot of information to discuss, a meeting may be the quickest way of dealing with it. We may ask to meet at:
- your Tax Office
- your home
- your business premises (if relevant)
If you prefer, you can ask to meet at your professional adviser's office.
You don't have to attend any meeting, but it'll enable you to ask questions and explain any points you think your Tax Office may not have understood. You can also ask a friend or relative to come along the meeting.
Possible outcomes of a tax enquiry
If nothing is wrong
You'll receive a letter (called a 'closure notice') telling you the enquiry has finished. In this case there won't be any changes to your tax return or claim.
If you've paid too much tax
We will change your return to reflect the lower figures and pay you interest from the date of your incorrect payment up to the day you get a repayment.
If you've paid too little tax
We will suggest changes and try to agree these with you. You'll then be asked to pay any tax due within 30 days of receiving the closure notice confirming the change.
If you can't pay the full amount straight away, you may be able to arrange payment by instalments. If you only owe a small amount you may be able to increase your Self Assessment 'payments on account' for the following year.
Self Assessment payments on account - learn more
Interest and other surcharges
Depending on the circumstances, you may have to pay interest or a penalty on underpaid tax. There are also other surcharges for late or non payment after issue of a closure notice.
How we work out your options for payment and any penalties or interest due is set out in our leaflet IR160 Enquiries under Self Assessment.
Read leaflet IR160 Enquiries under Self Assessment
Your right to appeal or end an enquiry
You have a right to appeal against decisions or penalty charges following an enquiry. You can also appeal to stop an enquiry if you feel there aren't any grounds for it to continue.
Appeals against HM Revenue & Customs tax decisions - learn more
Timing and conduct of enquiries
We normally have 12 months from the date you sent us your return to tell you that we intend to start enquiries.
Other deadlines apply for late and amended tax returns, or where the information you supplied was deliberately misleading.
We aim to conduct all enquiries as quickly as possible and with the minimum of inconvenience to you. You'll find more information, including how you can help and what rights you have, in our leaflet COP11 Conducting Self Assessment enquiries.
