How HMRC enquiries and information notices are handled can determine whether a matter is resolved, narrowed or escalates into litigation. We advise clients on responding to HMRC enquiries, compliance checks and information notices, helping them manage risk, co-ordinate the flow of information and present their position clearly and consistently.

Our approach

We take a wider perspective, critically challenging the subject matter and ensuring that the issues are properly understood. This includes considering what lies behind the request or challenge, how different strands of information connect and where the matter could realistically lead.

We then assess the possible end points for the enquiry and what would constitute a successful outcome. This includes identifying the risks that need to be managed and how the client’s position would need to be presented if the matter proceeds to dispute or litigation.

That analysis informs how each step is handled. Correspondence, submissions and disclosure are managed in a structured and controlled way, with a clear focus on supporting the client’s position over the life of the matter.

Managing engagement with HMRC

Clients naturally seek to cooperate with HMRC and demonstrate positive engagement. Clients are often supported by larger advisory teams at this stage, but without a clear strategy as to how the matter may develop. Difficulties often arise where HMRC’s objectives are not fully understood and information is provided without sufficient filtering or context.

We understand the value of a positive relationship with HMRC and the importance placed on maintaining and improving a taxpayer’s risk rating. We help clients engage constructively while ensuring that responses are proportionate, considered and aligned with the overall strategy. Where matters become entrenched, our approach remains measured and disciplined.

We also advise on the scope of HMRC’s powers and how requests should be addressed, ensuring that responses are legally grounded and consistent with the client’s position.

Information, evidence and privilege

Taxpayers often fail to appreciate that documents and data created when responding to HMRC, including communications with advisers, may later become disclosable. This is particularly relevant where advisers who do not benefit from legal privilege are involved.

We assist clients in managing the creation, review and production of information, including identifying what is required, how it should be presented and how privilege can be created and preserved. Where appropriate, processes are structured to ensure that materials support the client’s position and do not inadvertently create additional risk.

Where matters require more extensive work, we undertake structured document review, disclosure exercises and data analysis.

Independence and strategy

Where the underlying position has been developed by existing advisers, there can be a natural analysis bias. We provide an independent assessment, focusing on how the position is likely to be viewed by HMRC and, if necessary, by the Tribunal.

This includes challenging assumptions, reassessing technical analysis and ensuring that the approach adopted is aligned with the client’s objectives and the realities of the dispute.

International aspects

Complexities can arise where HMRC is acting on behalf of, or in conjunction with, overseas tax authorities. This includes information requests under international exchange of information regimes and situations involving documents held outside the UK or within overseas entities.

We advise on how such requests should be approached, including the interaction between HMRC’s powers, international obligations and practical considerations around access to information.

When we are instructed

We are typically instructed where:

• HMRC has opened a compliance check or enquiry;
• information notices have been issued or are expected;
• there is a risk that a matter will escalate into a dispute or litigation;
• responses involve complex technical or factual issues; or
• large volumes of documents or data need to be reviewed and provided.

How we help

We assist clients with:

• responding to HMRC enquiries and compliance checks;
• advising on information notices and the scope of requests;
• developing response strategy and positioning;
• managing document review, disclosure and data analysis;
• protecting privilege and managing sensitive information;
• engaging with HMRC in a structured and controlled way; and
• preparing for escalation into ADR, investigation or litigation where appropriate.

Contact us

If you are dealing with an HMRC enquiry or information notice, we can help you assess your position and determine the appropriate response. Please contact us to discuss.