The following Personal Tax guidance note by Tolley in association with Emma Broadbent of Grant Thornton provides comprehensive and up to date tax information covering:
There are several practical pointers that are useful for an adviser to consider when responding to a request from HMRC to check a return. The HMRC opening letter is discussed in the Opening letter to a compliance check guidance note.
As with most requests for advice, the first point that an adviser should consider is whether the engagement letter in place adequately covers the work required or whether a separate engagement is required. Payment terms should also be considered at this point. For example, some advisers may prefer to ask for a payment up front, before they begin handling an enquiry.
The adviser should also set up a separate file for the purpose of the check to keep records of correspondence with HMRC and the client and copies of information or documents sent to HMRC.
It is advisable to keep contemporaneous file notes of any conversations with HMRC and also to respond to HMRC’s requests in writing. HMRC will make its own notes of each conversation which will likely be used to emphasise HMRC points. It is therefore important for the adviser to keep their own file notes.
A tidy and indexed set of file papers should also speed up the process and ensure the adviser can refer to information easily. In the event that the check escalated to a Tribunal hearing, a tidy and complete file would assist with preparation.
An adviser should also be mindful of the timeframe for responding to the request and should take steps to agree an extension in advance of the deadline if it becomes apparent that one is required. Such a request can be agreed verbally but it is worth keeping a file note of the conversation and the agreement made.
It is good practice for an adviser to review any information that
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