CH227110 - How to do a compliance check: information powers: third party notice: bank mandates: introduction
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Where you need information or documents that a bank would normally provide to the person you should, in the first instance, ask the person to provide them; issuing a formal request and considering a penalty if you receive no response. If this approach is unsuccessful, only then should you consider the issue of a third party notice to a bank see CH227210.
The person may ask that you contact the bank direct. You may judge this to be the best way to progress your compliance check. However, particularly if you have issued a taxpayer notice requiring the person to provide information or provide documents, you should not allow the person to avoid that obligation by making direct contact with the person’s bank.
If you decide to make a direct approach to the person’s bank you will need the person to complete a bank mandate.
A mandate has the advantage that it can give a higher level of assurance that all the information you need has been produced. In cases where you require that higher assurance you may wish to take the initiative in proposing a mandate. Note that a mandate will only enable you to obtain material that the bank would have provided to the person.
You should make the person aware that the bank may charge him or her for the information provided. If you need the bank's internal confidential records, you will need to issue a Tribunal-approved third party notice, see CH227200.
Where the person is willing to give you a mandate you should let them have a mandate form for each bank you need to approach. Ask the person to sign and return each mandate form to you, see CH227120 for wording to be used in a free format letter for the person to return.
After the signed mandate is received an approach to the bank can be made, see CH227130.
Banks sometimes reply to a mandate with instructions asking you to use third party software to access the data. HMRC caseworkers must not do this. Instead, your relevant Systems and Data team should be consulted.