A compliance check is a formal investigation into your tax affairs to make sure your tax return is correct and/or to check that any payments made by the company are for the right amount and are paid on time. HMRC will bring the check to an end if nothing is wrong.
Why have HMRC asked me to do a self assessment?
Self-assessment is used by HMRC to calculate tax on your income. Generally, your tax is deducted automatically from your wages, pensions or savings – known as PAYE. However, if you receive any other income, you need to report this to HMRC by sending a self-assessment tax return once a year.
What is a compliance check?
Compliance checks are short, focused reviews, typically providing a high-level investigation of the extent to which statistics meet the standards of the Code of Practice for Statistics – Trustworthiness, Quality and Value.
How long does a compliance check take?
Straightforward enquiries into PAYE or business expenses can be completed relatively quickly, while more complex investigations that cover the whole of your tax return could take several months. On average, most compliance checks are settled in around three months.
What do you need to know about HMRC compliance checks?
Find out about the compliance checks process and the help you or your client (if you’re a tax agent) can get, during and after the checks. HMRC carry out compliance checks to: Something may trigger a check. However, HMRC has the right to check whether any tax return is accurate and complete.
When did HMRC start sending out compliance letters?
The first compliance letters began to arrive on 18 August. Have your cleints received such a letter? I would be interested to see a copy of the letter, if you can provide a redacted copy, as HMRC has not shared the text with the professional bodies.
What should I do after a compliance check?
Within 30 days, you can: send new information to the officer dealing with the check and ask them to take it into account This video explains what you can do if you disagree with a decision following a compliance check. If you need to speak to us about your compliance checks, contact the officer who’s dealing with your case.
What happens if HMRC check shows nothing wrong?
If the check shows there is nothing wrong, we’ll bring it quickly to an end. If our checks show you have overpaid tax, you will be repaid with any interest due added. If you have underpaid tax, you will need to repay this. You will be charged interest and you may receive a penalty.
