EM0091 - Introduction: types of enquiry: general

An officer of HMRC may enquire into any statutory return (or amendment of that return) or statutory claim made outside a return. There is no statutory definition of an enquiry, so it carries its normal dictionary meaning of `seeking information, asking, questioning'.

Simple assessments are not returns. There is no power to enquire into a simple assessment.

In practice the nature and extent of enquiries will vary considerably.

To organise work within HMRC, we have historically referred to 'full enquiries' covering the return as a whole, and 'aspect enquiries' dealing with one or more matter(s).

The legislation does not however distinguish between different types of enquiry, therefore all enquiries into tax returns are legally enquiries into the full return, unless you are restricted to enquiring into the amendment to a tax return only. This is the case even if in practice you only need to check part of the return or amendment. This means you should not refer to either aspect or full enquiries in communications with the taxpayer or their agent.

If we identify risks that relate to other taxes or duties, you must liaise with the relevant compliance officers responsible for that tax or duty. If they open a compliance check to address these risks, you should work your enquiry in conjunction with them.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Although most enquiries are risk-based selections, some enquiries are randomly selected nationally EM0093.

If we make no enquiries within the period allowed, or if we have completed an enquiry, the return becomes final unless

• the taxpayer is still within time to amend their return, or
• the taxpayer has carelessly or deliberately caused a loss of tax, or
• we discover that the return was incorrect and the taxpayer had not disclosed enough information to show this.

We can make a discovery assessment and pursue enquiries under these circumstances, see EM3250+.

You must apply the law to the facts you encounter throughout the enquiry. You must aim for consistency of treatment between taxpayers. This can be difficult to achieve in practice because you will not always be aware of how other taxpayers with similar circumstances have been treated. You should therefore submit any technical issues which are unique, or that you are uncertain about to the appropriate technical specialist.

You should submit any compliance case where you believe your actions may lead to inconsistent treatment between taxpayers or groups of taxpayers to TALA, see EM21000. You should also submit cases where your proposed course of action is unusual or where the circumstances in which you intend to apply it are unusually sensitive. If either applies, send a copy of your report to your manager for approval first.

You should never make any statement, written or oral, which a taxpayer might interpret as granting an amnesty to a particular group or class of taxpayers. Such a statement, even if intended to apply to just a few taxpayers, could inhibit the freedom of action of HMRC, or specialist agencies.