HMRC Compliance Checks: Guidance for Taxpayers and Businesses

HMRC may open a compliance check to check whether a tax return, tax calculation, repayment claim or business record is accurate and complete. A compliance check can concern VAT, Corporation Tax, PAYE, Self Assessment or other taxes.

This page helps taxpayers and businesses understand official HMRC/GOV.UK guidance on compliance checks. It explains what HMRC may check, what businesses should prepare, how to respond, and why constructive engagement matters.

Businesses should work with HMRC by providing accurate records and clear explanations. If the business disagrees with HMRC, the disagreement should be explained by reference to the evidence, the legislation and the relevant guidance.

Key Points

• Read HMRC’s opening letter carefully.
• Identify the tax, period and issue under review.
• Gather returns, accounts, invoices, bank statements and correspondence.
• Keep a clear audit trail of all documents sent to HMRC.
• Ask HMRC to clarify unclear or disproportionate requests.
• Consider review, appeal or ADR where a genuine dispute remains.

What is a compliance check?
Why HMRC may start a check
What HMRC may ask for
Visits and meetings
Outcomes
Disagreement and dispute routes

What is a Compliance Check?

A compliance check is a review carried out by HMRC to confirm that tax returns, records and other tax-related information are accurate and complete. Compliance checks can cover a wide range of taxes and may focus on specific transactions, accounting periods or areas of perceived risk.

Why HMRC May Start a Check

HMRC may begin a compliance check for a variety of reasons, including discrepancies in tax returns, unusual trading activity, repayment claims or information received from other sources. In some cases, checks form part of routine compliance activity rather than being triggered by a specific concern.

What HMRC May Ask For

During a compliance check, HMRC may request records, invoices, contracts, bank statements, accounting information or explanations relating to specific transactions. The information requested will usually depend on the nature and scope of the enquiry being undertaken.

Visits and Meetings

HMRC may arrange meetings or visits as part of a compliance check where further information is required or records need to be reviewed. These interactions provide an opportunity to discuss the issues being examined and clarify matters relating to the business’s tax affairs.

Outcomes

A compliance check may conclude with no further action, confirmation that returns are correct or adjustments where HMRC identifies inaccuracies. Outcomes can vary depending on the facts of the case, the quality of records maintained and the information provided during the review.

Disagreement and Dispute Routes

Where a taxpayer disagrees with HMRC’s conclusions, a number of options may be available. These can include requesting an internal review, pursuing Alternative Dispute Resolution or submitting a formal appeal. Understanding the available routes can help ensure disagreements are addressed through the appropriate process.