Investigation deadline

[question.man]

Hi all,
under what circumstances can HMRC open a full enquiry into someone when its been more than 12 months since the submission of their return?

2010 return submitted late in March 11 and enquiry opened July 12

thanks for any advice

[Bridge96]

Hi question.man,

I would advise contacting a tax investigation expert for advice on your current situation and options available. I would not contact HMRC directly. A professional will be able to do all of this for you.

If you would like confidential advice you can speak to a tax investigation advisor on 0800 999 9980, or alternatively you can email info@kinsellatax.co.uk.

I hope that this helps.

[nikkisizer]

under what circumstances can HMRC open a full enquiry into someone when its been more than 12 months since the submission of their return?

2010 return submitted late in March 11 and enquiry opened July 12

Hello question.man,

When the return is filed late, after the filing date, then the enquiry window runs to the quarter date next following the first anniversary of the date on which the return was received. The quarter dates are 31 January, 30 April, 31 July and 31 October.

E.g. HMRC received your tax return in March 2011 so the enquiry window would have expired 30 April 2012.

If your dates are correct then HMRC have missed their deadline so I would advise you double check your dates!

Happy to help so if you need any further assistance please do not hesitate to contact me.

[question.man]

thanks a lot for the responses. i will double check those dates again before i go in all guns blazing

thanks

[mullet]

QM - how is HMRC's first letter worded? Does it refer to Section 9A Taxes Management Act 1970? Or does it say something like "I believe that your tax return for the year ending xxx may be incorrect"? If the former, then HMRC do indeed appear to be out of time (but may still be able to proceed under the Discovery rules in Section 29 TMA 1970). If the latter then this is happening outside the enquiry process using HMRC's Discovery powers. They can go back 4 years regardless, up to 6 years for careless behaviour and up to 20 years for deliberate behaviour. (The time limits run from the end of the tax year concerned).

[Bridge96]

If your letter quotes the Section9A TMA 1970, then it means that a tax investigation has been opened into your personal tax return by HMRC's local compliance offices - it can be issued to you up to 12 months after the filing date of the personal tax return that they are looking at.

The initial letter from HMRC (if quoting Section9A TMA 1970) should also tell you whether HMRC plan to open a full or aspect (looking at specific parts of your tax return) tax investigation.

If it is a full investigation then it is more than likely that HMRC will request a meeting with you. I would advise not to do this unless you have a professional tax investigation expert present.

By looking at your tax return if HMRC suspect tax fraud or tax avoidance has taken place then they will open a code of practice 9 or code of practice 8 investigation into your tax affairs.

Its not something that you should deal with alone. For the best outcome I would advise seeking advice from the start.

I hope that this helps.