HMRC tax loss notification letters: guidance for businesses

A tax loss notification letter is a serious HMRC communication. Businesses should read the letter carefully, identify the transactions and periods concerned, preserve all relevant documents and consider whether specialist support is required.

This page provides educational guidance on common record and evidence issues arising from HMRC tax loss notifications, including VAT records, supplier and customer checks, transport evidence, payment records and business correspondence.

The purpose is not to encourage confrontation with HMRC. The purpose is to help businesses understand HMRC’s concerns, organise evidence and respond clearly and responsibly.

• Purchase and sales invoices.
• Bank payments and payment trails.
• Supplier and customer checks.
• Companies House, VAT number and director checks where relevant.
• Transport, delivery and export evidence.
• Written explanations of commercial purpose and transaction flow.

Recommended Sections

• What a tax loss notification letter may indicate
• Why records and evidence matter
• VAT fraud and due diligence issues
• Supplier and customer checks
• How to respond constructively
• When specialist support may be required