A discovery assessment allows HMRC to recover Income Tax or Capital Gains Tax that it believes has been underpaid for an earlier tax year. However, HMRC must meet legal conditions and act within the correct time limit. We explain when HMRC can issue an assessment, how far back it can go and what to do if you disagree.
Putting off financial problems can cost your business time and money. Learn how to spot the warning signs, manage cash flow and take action before small issues become harder to resolve.
HMRC may ask for bank statements, invoices, contracts or explanations during a tax compliance check. Some requests are informal, while others are formal information notices issued under Schedule 36 of the Finance Act 2008. Understanding the difference matters because formal notices carry legal deadlines, appeal rights and penalties for non-compliance.
Many company directors do not delay their annual accounts because they are careless. More often, daily pressures, missing records, worries about tax or uncertainty about what the accountant needs cause the delay. However, waiting until the filing deadline creates avoidable risks for both the director and the company.
HMRC does not rely only on the figures entered on a tax return. It can compare returns with information from employers, banks, letting agents, online platforms, overseas tax authorities and public sources. A difference does not automatically prove undeclared income, but it may lead HMRC to ask questions or open a compliance check.
You can usually attend an HMRC meeting without an accountant or tax adviser. You may also choose not to attend an ordinary meeting. However, attending alone can carry unnecessary risks where HMRC is examining historic errors, undeclared income, overseas matters, large tax liabilities or possible deliberate behaviour.
Missing a Making Tax Digital quarterly update does not necessarily mean an immediate fine. HMRC will not issue penalty points for late quarterly updates in the 2026–27 tax year. From later tax years, however, a missed deadline will normally create a penalty point, and repeated failures can lead to £200 penalties.
When you give an accounting firm your tax and financial information, who can see it? This guide explains who may need access, why firms sometimes share information and what safeguards you can expect.
An unresolved tax problem can feel overwhelming when you do not know how much you owe or what HMRC may do next. Establishing the facts can turn one frightening unknown into a series of manageable steps.
An HMRC investigation can sound frightening, particularly when much of what people hear comes from rumours, alarming headlines or someone else’s experience. In reality, HMRC enquiries take many forms, and receiving a letter does not automatically mean that HMRC suspects fraud. Understanding the facts can help you respond calmly, protect your position and avoid making the situation more difficult
