HMRC Investigations | Finance Act 2008, Schedule 36 Notice
In circumstances where HMRC considers that a taxpayer is failing to provide appropriate co-operation, whether through the withholding of relevant information or documentation, it may invoke its powers under Schedule 36 of the Finance Act 2008. This legislation enables HMRC to issue a formal legal notice, commonly referred to as a Schedule 36 Notice or Information Notice.
A Schedule 36 Notice requires a taxpayer to provide information or to produce a documents that HMRC reasonably required for the purpose of checking the taxpayer’s tax position.
John Veale of KANGS comments upon the operation of such Notices.
Operation of an Schedule 36 Information Notice
- Where HMRC is checking an individual’s tax position and has requested documentation or information that has not been provided, an Information Notice may be issued.
- In certain circumstances, HMRC may seek the approval of the Tax Tribunal before issuing an Information Notice.
- HMRC may serve an Information Notice without firstly requesting the information or documentation.
- HMRC can request any information/documentation considered relevant.
- HMRC cannot ask for information not in the possession of the taxpayer or which cannot be obtained, that relates to the tax position of a person who died more than four years before the issue of the Information Notice, documents created in preparation of a tax appeal, legally privileged documents or any material affecting health or welfare.
- There is no right of appeal against any request in the Information Notice seeking statutory records in relation to tax matters although a right of appeal exists in relation to a request affecting other documentation/information.
Failure To Comply With An Schedule 36 Information Notice
- Failure to supply information requested by the date specified in the Information Notice may result in a £300 penalty.
- An ongoing daily penalty of £60 may accrue until the information is provided.
- Concealing or destroying or arranging to conceal or destroy documentation or information that has been requested, will attract penalties.
- A penalty of up £3,000 may be imposed for carelessly or deliberately providing incorrect documentation/information. This being for each incorrect document or piece of information.
- Penalties can be avoided if any inaccuracies in regard to information provided to HMRC are notified promptly upon discovery.
- Ultimately, inaccuracies, concealing documentation/information or destroying can result in a criminal investigation being commenced.
Who Can I Contact for Advice & Help?
If you receive an Schedule 36 Information Notice, or any other Notice from HMRC you should seek immediate expert advice.
The team at KANGS offers specialist advice and guidance in all aspects of Tax Investigations pursued by HMRC including:
- Domicile issues
- Tax Tribunal Representation
- Code of Practice 8 investigations
- Code of Practice 9 declarations
- HMRC Criminal investigation and prosecution.
Please do not hesitate to contact the team at Kangs Solicitors through any of the following who will be pleased to speak to you:
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through video conferencing or telephone.
