HMRC compliance checks (formerly known as enquiries, visits and inspections) are the standard system used by HMRC to inspect taxpayer records. The standardised compliance check applies to most HMRC taxes. The introduction of the standardised compliance check (back in 2009) included the alignment of time limits for making tax assessments and claims at four years.

Compliance checks into returns or other documents are carried out by HMRC to ensure that taxpayers are paying the right amount of tax. The compliance checks apply to both individual taxpayers and businesses.

The factsheet titled Compliance checks: penalties for careless inaccuracies relating to tax avoidance CC/FS7c includes information on penalties that can be charged by HMRC for inaccuracies on returns or other documents.

The factsheet explains how HMRC charge penalties where the inaccuracy relates to the use of tax avoidance or was due to careless behaviour. Under certain circumstances, HMRC may reduce the amount of penalties due. HMRC is unlikely to decide to suspend a penalty that relates to the use of tax avoidance. The factsheet also explains what happens in the event of a disagreement between the taxpayer and HMRC.

Source: New feed