CH258300 - How to do a compliance check: using inspection powers: invigilation: powers to invigilate

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.

Schedule 36 Finance Act 2008 gives HMRC the power to invigilate without consent.

It does not provide you with

  • an absolute right of entry, or
  • the right to stay on premises

if you are asked to leave.

Schedule 36 does allow for a penalty to be applied when a customer unreasonably obstructs an inspection that has been approved by a Tribunal, see CH26240.

Although HMRC officers have the power to invigilate at a customer’s premises the use of this power must be reasonable and proportionate.

Invigilation may be reasonable and proportionate when

  • other evidence such as references from suppliers or covert activity suggests that sales have not been declared, or
  • the Daily Gross Takings record is incomplete or has not been maintained.

You must be aware that invigilation is a very intrusive action and must only be done for the purpose of quantifying the suppressed sales after you have

  • checked the business records
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)CH290100(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • explained to the customer that you believe they have under-declared their sales or taxable sales
  • given the appropriate person factsheets CC/FS7a and CC/FS9 and explained their contents
  • asked questions about the inaccuracies and discussed the best way to quantify the unpaid tax
  • been unable to agree an alternative way to quantify the unpaid tax.