HMRC Tax Enquiry: What to Do When That Letter Arrives

Receiving a letter from HMRC opening a tax enquiry is unsettling, even when you’ve done nothing wrong. This short guide from Filing Accounts UK covers the immediate practical steps to take. For the full breakdown of enquiry types, time limits, and penalties, see our complete guide: What Happens If HMRC Opens a Self Assessment Enquiry?

Your First Steps

• Don’t ignore it. Respond within any deadline given, even just to acknowledge receipt while you gather advice.
• Check the letter is within time. HMRC generally has 12 months from when you filed to open a standard enquiry — see our full guide for the exact rules on late and amended returns.
• Get professional advice early. This is exactly the situation an accountant or tax adviser is best placed to help with, and many can liaise with HMRC directly on your behalf.
• Gather your records — bank statements, invoices, receipts, and anything relevant to what’s being queried.
• You’re not obliged to attend a meeting in person for a standard enquiry — correspondence can often be handled entirely in writing through your adviser.

HMRC’s Charter

HMRC must treat you fairly and professionally under its published Charter. If you feel HMRC hasn’t followed this, you can complain, and ultimately escalate to the independent Adjudicator’s Office.

If the Enquiry Drags On

Long-running enquiries can sometimes be resolved through Alternative Dispute Resolution (ADR) — an independent HMRC mediator not previously involved in your case. If HMRC isn’t making progress at all, you can apply to the tax tribunal for a closure notice, which forces HMRC to either close the enquiry or justify why more time is needed.

For the full detail on enquiry types (aspect, full, random, discovery assessments, and COP9), exact time limits, and how penalties are calculated, read our complete guide: What Happens If HMRC Opens a Self Assessment Enquiry?

Facing an HMRC Enquiry? Talk to Filing Accounts UK

At Filing Accounts, we support clients through HMRC enquiries from the first letter through to resolution.