Response support for HMRC checks
HMRC compliance check accountant in Cardiff
We help individuals and businesses understand the opening letter, reconstruct the figures being checked and respond with relevant records and clear explanations.
The procedure
What is an HMRC compliance check?
A compliance check is HMRC’s review of a tax position to establish whether the correct tax has been paid and the right reliefs or repayments claimed. It can concern an individual, a business or an employer.
The result may be no change, additional tax, a reduced claim or a repayment. Interest and penalties are separate from the underlying tax and depend on the circumstances.
See the official HMRC compliance check process.
Continue current compliance
Keep filing later returns and paying current liabilities while the check is open. New records and returns should remain consistent with the explanations being given.
First response
What to do after receiving a compliance-check letter
The aim is to understand the request and rebuild the questioned figure before responding.
Identify the check
Record the taxpayer, tax, period, officer, reference, questions and every deadline shown.
Preserve original records
Keep invoices, statements, bookkeeping, returns and electronic data in their original form.
Reconcile the figure
Trace the return entry back to the ledger, bank, contract, invoice or calculation supporting it.
Plan one response
Answer each relevant question, identify genuine gaps and keep the factual explanation consistent.
What may be examined
The scope follows the tax return, claim or business system under review
HMRC can begin with one entry and widen the check where the evidence gives a reason to consider connected matters.
Personal income and claims
Employment, self-employment, dividends, expenses, pensions, reliefs and tax already deducted.
Property and gains
Rent, expenses, ownership, mortgage interest, acquisition cost, improvements and disposal proceeds.
Foreign income and residence
Travel, overseas statements, source, foreign tax, exchange rates, treaty claims and FIG eligibility.
Company accounts and tax
Turnover, expenditure, assets, losses, director loans, dividends and tax computation adjustments.
VAT transactions
Sales, purchase evidence, rates, exemption, reverse charges, imports and VAT control reconciliations.
PAYE and CIS
Worker status, pay, benefits, expenses, subcontractor verification, deductions and RTI submissions.
Banking and private funds
Transfers, loans, capital introduced, private expenditure and receipts not recorded as taxable sales.
Accounting systems
Digital records, audit trails, till data, invoices, stock, cash controls and differences between reports.
Information and documents
Informal requests and Schedule 36 notices are not the same
An informal request can be discussed and narrowed by agreement. A statutory information notice may carry penalties for non-compliance and can have specific appeal rights, commonly subject to a 30-day limit.
We review whether each item is reasonably required, already held by HMRC, within the taxpayer’s possession or power and covered by any restriction. Relevant statutory records still need to be supplied.
The official Schedule 36 summary explains the reasonable-requirement test and appeal period. HMRC also publishes help and support during a compliance check.
Bank statements need reconciliation
Transfers between accounts, loans, gifts, capital introduced and non-business receipts should be marked so HMRC can see why total deposits differ from taxable turnover or income.
Compliance-check service
What our HMRC compliance-check support includes
We review the opening letter, establish agent authority and rebuild the return or claim from the available records. Information is organised around HMRC’s questions, with separate schedules for reconciliations and adjustments.
Where an error exists, we quantify the additional tax, interest and likely penalty basis. Where the filing is supportable, we explain the facts and evidence and work towards formal closure.
Work can include
- letter, scope and deadline review;
- return and record reconciliation;
- bank and transaction schedules;
- draft correspondence and document packs;
- meeting and information-notice support;
- tax, interest and penalty calculations;
- closure, review, appeal or ADR support.
Cardiff taxpayers and businesses
A clear audit trail is particularly important where roles overlap
A director may have company payments and a personal return; a landlord may mix property and private banking; a sole trader may use several payment platforms. Those connections should be reconciled rather than hidden inside a general explanation.
We prepare a response that follows the actual records and separates the taxpayer, period and tax treatment for each item.
Send for the opening review
- the complete HMRC letter or notice;
- the filed return and calculation;
- supporting accounts or schedules;
- bank and source records requested;
- known mistakes or missing documents;
- all response and appeal dates.
Connected tax work
Related services and calculations
These subjects may use the same facts, but each retains its own filing or advisory purpose.
HMRC tax investigations
Support where the enquiry is wider, cross-tax or escalating.
Open this page →Tax disclosure
Correct a separate unpaid-tax issue using the proper route.
Open this page →Self Assessment returns
Prepare current or outstanding personal filings.
Open this page →Corporation Tax
Reconcile company records, accounts and CT600 figures.
Open this page →Clear fee basis
Scope and price are agreed before work begins
A compliance check is quoted after the opening letter, tax periods, questions and available records are reviewed. Fixed routine-return prices do not apply to HMRC correspondence or reconstruction work.
Common questions
Questions about HMRC compliance check support
The correct answer follows the complete facts, records and procedure. These are the usual starting points.
Does a compliance check mean HMRC thinks I committed fraud?
No. A compliance check tests a tax position and can end with no change. Evidence discovered during the check can, however, lead HMRC to consider behaviour or widen the enquiry.
Must I give HMRC everything it asks for?
Relevant statutory records and valid notice requirements must be respected. Relevance, scope, possession, legal restrictions and appeal rights should be reviewed item by item.
Can I have an accountant present at an HMRC meeting?
Yes. HMRC’s published process allows an accountant or legal adviser to attend. The purpose, agenda and records should be prepared before agreeing to a meeting.
What happens if the return is correct?
We provide the reconciliation and evidence supporting it and seek closure without adjustment. HMRC may still ask follow-up questions before reaching that conclusion.
Can a compliance check be appealed?
Individual information notices, assessments, amendments and penalties may carry review or appeal rights. The opening of a check itself is not treated in the same way, although closure or ADR may be requested in appropriate cases.