CH205310 - How to do a compliance check: types of compliance checks: pre-return checks: introduction
This page and chapter are under review as the relevant content is also published in the technical guidance chapters of the Compliance Handbook, within Compliance checks factsheets and in Compliance checks guidance. If you use particular pages regularly, please email hmrcmanualsteam@hmrc.gov.uk to let us know the specific content you find useful.
These sections explain more about
- when pre-return checks can be appropriate and effective, see CH205320
- how pre-return checks can be used in relation to checks on tax planning and avoidance, see CH205330
- investigating the withholding of information when a person fails to file certain tax returns on time, see CH205335
- restrictions on the use of information and inspection powers provided by Schedule 36 Finance Act 2008, see CH205340
- how to correct inaccuracies identified by pre-return checks, see CH205350.
An advantage of a pre-return check is that
- it allows you to examine contemporary records and discuss them with the people who completed those records
- it allows the person and HMRC to agree matters before the person makes a mistake on a return yet to be filed, and
- it gives an opportunity to you to advise the person on matters that might affect a return yet to be made.
You should, however, bear in mind that until a tax return is filed you cannot pre-judge how a person will deal with a transaction.
Business Records Checks are a form of pre-return check carried out by specialist BRC teams. For details on Business Records Checks see COG940000.