HMRC compliance check tool launched

The end of April 2025 saw the online launch of a new HMRC compliance check tool. The new tool is a handy way for both businesses and individuals to understand HMRC compliance checks and what they involve.

What is an HMRC compliance check?

HMRC can launch a compliance check on any taxpayer or business. They can check any taxes you pay (such as Income Tax, VAT and Corporation Tax), scrutinise your accounts and tax calculations, or put your Company Tax Return and PAYE records under the microscope.

If HMRC opens a compliance check into your affairs, it may ask you for financial information. It may also ask to visit your home, your office or an advisor’s office (such as your accountant’s office). It can also ask you to visit one of its own offices. If HMRC sends you an inspection or information notice and you fail to send information or refuse a visit, you may have to pay a penalty.

After the check, HMRC will write to tell you the results. If you owe more tax than you’ve paid, you’ll be asked to pay the extra amount within 30 days. You’ll also need to pay interest on it. If you’ve paid too much tax, you’ll get repaid and may also qualify for interest.

If you do owe extra tax, you may also have to pay a penalty. This will depend on various factors such as the reason why you underpaid the tax, whether you told HMRC as soon as possible and how helpful you were during the HMRC compliance check.

What triggers an HMRC compliance check?

A compliance check can be triggered by a number of factors. For example, HMRC may launch a check if your tax return figures seem wrong, you’ve claimed a large refund while turnover was low, or declared a small amount of tax when turnover was high. The important thing to remember is that HMRC has the right to investigate the affairs of any taxpayer. It also has increasingly sophisticated AI systems (notably HMRC Connect) that help to sniff out non-compliance.

The Interactive Compliance Guidance tool

If you do become subject to an HMRC compliance check, it can be a stressful and worrying time. For this reason, HMRC has launched the Interactive Compliance Guidance tool. This online tool offers help and support in six related areas:

• Understanding an HMRC compliance check
• Why HMRC has asked for certain information or documents
• Getting help because of health problems or personal circumstances
• Appointing someone to deal with HMRC on your behalf
• Disagreeing with the outcome of your HMRC compliance check
• Paying a tax assessment or penalty

Each section offers practical help and advice, with some including helpful YouTube videos. This include videos on what compliance checks are and what to expect during them.

Help! HMRC wants to investigate my affairs

If HMRC wants to launch a compliance check into your affairs, the new interactive tool will help you make sense of the process. However, it’s important to realise that checks can take months and – in complex cases – years. For this reason, it’s a good idea to protect yourself with our tax investigation fee protection service. This means that, if the taxman comes knocking, we can help you throughout the compliance check up to the value of £100,000 in fees. Get in touch today if you’d like to learn more.