Received an HMRC compliance check letter? Do this first

HMRC compliance checks aren't just for large businesses. We regularly help clients with checks on VAT repayment claims, undeclared rental income and self-assessment returns.

A check doesn't mean HMRC thinks you've done something wrong. But how you respond in the first few days often decides how long it runs and what it costs.

Do this first

1. Don't ignore it. Note the deadline on the letter. If you need more time, ask for it in writing before the deadline passes.
2. Don't phone HMRC on the spot. A casual call can volunteer information you didn't need to give.
3. Gather your records. Bank statements, invoices, receipts and the return in question.
4. Get professional help early. An accountant can authorise as your agent and handle all contact with HMRC.

Mistakes that make it worse

• Sending more documents than HMRC asked for.
• Guessing at answers instead of checking the records.
• Missing the deadline, which can lead to formal information notices and penalties.

If something was wrong

Penalties are much lower when you tell HMRC about an error yourself, before they find it. We can advise on the best way to disclose and keep penalties to a minimum.

How BDE can help

Our tax investigation support team deals with HMRC for you, from the first letter to the closure notice.

This article is general guidance based on the position at the date shown and is not advice for your circumstances. Speak to us before acting.