HMRC Investigation: What to Do Before Speaking to HMRC

HMRC letters usually explain which tax, period, return, or transaction is being checked. Before responding, identify the deadline, information requested, and whether HMRC is asking a narrow question or opening a wider review.

If records are incomplete or you are unsure why a figure was submitted, pause and reconstruct the position before replying. A rushed answer can create inconsistencies that are harder to explain later.

Your regular accountant may handle routine checks. Consider specialist investigation support where the amounts are large, penalties are mentioned, VAT or PAYE is involved, or HMRC suggests deliberate behaviour.

Verify the contact using official HMRC details if anything looks unusual. Record the reference, officer, tax, period, scope, response date and every document requested. Tell the existing accountant or insurer promptly because fee-protection or notification conditions may have deadlines.

Do not alter, recreate or discard source records. Preserve bookkeeping versions, emails, contracts, invoices and working papers, then build a chronology of what happened and who prepared the filed figure.

Tie the submitted figure back to accounts, ledgers, bank records and source evidence. List inconsistencies separately and establish whether they are transcription mistakes, missing transactions, judgment calls or evidence gaps. A clear reconciliation is more useful than a long narrative written from memory.

Review adjacent periods for the same issue. If an error repeats, understanding the full extent early can improve the accuracy of disclosure and prevent contradictory responses later.

HMRC may make an informal request or issue a statutory information notice. If information appears irrelevant, unavailable, privileged or unduly burdensome, do not simply ignore the request: ask the officer to clarify and obtain specialist advice about obligations and appeal rights.

HMRC may ask for a meeting, but its public guidance says you do not have to meet if you do not want to. Whether a meeting helps depends on the facts, preparation and scope. Agree attendees, agenda and record-keeping before taking part.

Continue filing current returns and paying tax while the check is open. Ring-fence the team and records needed so the enquiry does not cause new late filings. If cash is constrained, discuss payment options separately rather than withholding current information.

Keep a correspondence log with dates sent, documents enclosed and questions outstanding. Share facts with an authorised adviser; the taxpayer remains responsible for their accuracy even when the adviser communicates with HMRC.

Before agreeing adjustments, reconcile tax, interest and any penalty and understand the behaviour and quality-of-disclosure assumptions. Request the closing document and confirm any future-return treatment, amended records or payment arrangement.

If you disagree, note the decision date and the review or appeal deadline immediately. The right route depends on the document and tax involved, so follow the instructions on HMRC’s decision and obtain specialist help where the amount or principle is material.