Tax & Accounting News

HMRC to trial new approach to enquiries

20/11/2007

HM Revenue & Customs are to trial a new approach to enquiries ("Openness and early dialogue") in the period from November 2007 to April 2008.

The main aspects of the new approach are as follows:

• At the outset, HMRC will inform the taxpayer of the reason for the enquiry, and state whether it is an aspect or full enquiry;

• HMRC will aim to agree a timescale for the enquiry, which will be explicit but flexible;

• A full agenda will be provided for any meeting, but not attending a meeting will not in itself be seen as a lack of co-operation.

• HMRC will attempt to keep the enquiry focused on the key points, and will explore whether some or all of the steps can be carried out on the same day.

Some of these features suggest that HMRC are at last beginning to address some of the concerns of taxpayers and agents, and perhaps some lessons have been learned from the failed "enabling letters" and "interventions" initiatives in recent years.

Time will tell if this apparent openness proves to be genuine and helpful, and we await the outcome of the trial with interest.

 

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