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HMRC enquiries: do not assume all requests are justified

During a tax investigation, HMRC will make requests for information, but it must do so within a set timeframe and be justified, fair and reasonable. Withers tax director Jeff Millington explains the rights of taxpayers, discovery powers and time limits

People generally assume that HMRC officers only request what they are entitled to. Whether the request is within a legal time limit is not usually considered.

HMRC has to operate within legally defined time limits. These govern its ability to open enquiries, ask for information and raise assessments.

For an individual taxpayer, where a return is filed on time, HMRC has 12 months from 31 January following the end of the previous tax year to open an enquiry. If it fails to do so, it has to rely on discovery powers.

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