DST61200 - Notice and Scope of a Compliance Check

HMRC must give the Responsible Member written notice of the intention to enquire into a return. This is the ‘compliance check notice’. The notice must be given within a statutory time limit, often called the compliance check window, see DST61300. The notice will be issued to the Responsible Member.

The issue of the compliance check notice is done in the form of a letter, the process is not automated. Care should be given to the wording to ensure it is in line with standard HMRC guidance.

The notice must be received by the Responsible Member before the last date of the compliance check window. A notice of intention to perform a compliance check is given on the date on which the notice is delivered to the taxpayer. For a notice given by post, this means that it should be despatched in sufficient time for it to arrive at the premises of the Responsible Member before the window closes.

Scope of a Compliance Check

A compliance check into a return can extend to anything in the return, or anything required to be contained in the return.

If the compliance check is due to an amendment to the DST return, the scope of the compliance check is limited to matters relating to or affected by that amendment. This is unless the compliance check window for the original return is still open.

HMRC do not have to give reasons for dissatisfaction with the return and should not do so.

HMRC cannot open a compliance check if a compliance check has previously been opened and closed into a DST return for that period and no new return has been received. A discovery assessment for the period may still be made.