Penny Ciniewicz, HMRC’s Director General for Customer Compliance, said, “We know that compliance checks can be daunting."
As HMRC cracks down on tax avoidance and non-compliance, the government has unveiled a free resource to help individuals and businesses understand what to do if a compliance check into their tax affairs is opened.
The guidance and interactive tools are free to use, available directly from GOV.UK and are for information purposes only. The guidance tool helps you understand what a compliance check is, why it is happening and what to do during the process. You can access the online tool for the following scenarios:
- HMRC compliance checks
- Why HMRC has requested specific information or documents
- How to request extra support due to health or personal circumstances
- How to appoint someone to act on your behalf
- What to do if you disagree with a decision made by HMRC
- How to pay a tax assessment or penalty
Is going on the tool risky?
Users will not be registered for any taxes as a result of using the guidance and HMRC will not collect or store any information about the user, according to a government statement. Interactive Compliance Guidance tool sessions will end after 15 minutes of inactivity, as is usual for such online services.
Penny Ciniewicz, HMRC’s Director General for Customer Compliance, said, “We know that compliance checks can be daunting and we are always looking for ways to improve our support for customers.”
Joanne Walker, Low Incomes Tax Reform Group (LITRG) Technical Officer and Customer Experience Advisory Group member, added: “When unrepresented customers have a tax compliance problem, it can be difficult for them to find the help they need. This new interactive tool from HMRC makes compliance guidance readily accessible in one place, and easier for people to find the information that is relevant to them.”
Tax compliance can be a minefield
“It’s no secret that tax and compliance can be a minefield, said Seb Maley, CEO of tax insurance specialist, Qdos.
Maley said the fact that this resource has been introduced is also a nod to HMRC’s level of compliance activity.
He said, “With more data and information at its fingertips – along with 5,000 incoming tax compliance officers – all signs point towards HMRC carrying out more checks into the affairs of taxpayers and businesses. It’s why making sure your tax affairs are in order is arguably more important than ever.
“While this resource could prove useful in giving those contacted by HMRC a better understanding of the process, it’s not there to ensure compliance – that remains up to the taxpayer or business. Nor is it a substitute for expert advice, which, ideally, should be sought by those subject to checks before HMRC is responded to.”
For more information, you can go to the compliance check tool or select the ‘Compliance checks’ tab on the tools and calculators page.