HMRC Interventions

August 2006

There is a "new game" in town, HMRC Interventions!

The Revenue are trialling a new approach with their customers (taxpayers), the stated objectives being:

a review of current record keeping, to make sure they meet HMRC standards.
a short risk review.
self audit of tax returns, i.e. phone calls or letters requiring taxpayers to consider changes to their returns.
correction challenges - where the Revenue have good quality information, from banks etc, they will simply change your return and ask you why the information returned was incorrect.

Initial contact may be by letter or a telephone call. We would strongly advise all clients to contact us immediately should an approach be made. We would also advise against entering into a dialogue with HMRC - simply advise them that you will refer their enquiry to your accountant. It is by no means certain that we will receive copies of correspondence, or notification that calls will be made.

It is also worth mentioning that under current legislation the Revenue have no powers to carry out these interventions - they can only do so with your agreement and co-operation. The Revenue are recently quoted as saying:

"...the pilots are purely voluntary and there is no question of any customers being compelled to take part."