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Introduction to compliance checks

A6.601 Background to the compliance checks regime

For the latest New Development, see ND.2791.

HMRC stated that it considered a key element in achieving the aims of the HMRC review of powers, deterrents and safeguards that ran between 2005 and 2012 was the statutory power to make checks in respect of the taxes, duties, etc which it administers, to ensure that the correct amount of tax is being collected (or repaid). HMRC felt that the fact the powers it inherited from its predecessor departments were not aligned hampered its effectiveness, particularly when more than one tax was involved.

Under those powers, inherited in 2005:

1. Ìý

   •ÌýÌýÌýÌý for VAT and PAYE, it had inspection powers with no right of appeal

2. Ìý

   •ÌýÌýÌýÌý for income tax, capital gains tax and corporation tax, it had a combination of:

3. 1. Ìý

      –ÌýÌýÌýÌý information powers, some of which needed pre-authorisation, and

   2. Ìý

      –ÌýÌýÌýÌý enquiry powers that could only be used once a self-assessment