‘HMRC Enforcement’ is a broad label that covers everything from debt collection to civil or even criminal court proceedings. At Altion Law, we can help by guiding you through any HMRC-related issue you are facing, setting a clear strategy, and keeping the scope of the dispute under control. Where it makes sense, we can also work alongside your accountant so that the figures, the narrative, and the legal position all align.
For a confidential free discussion, call us today on 01908 538293, alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.
What HMRC enforcement covers
Enforcement can include compliance checks and enquiries, formal requests for information, on-site inspections, assessments to collect additional tax, penalties and interest, action to recover unpaid tax if HMRC believes payment is being avoided, and court proceedings.
The first step is to identify the type of matter you are facing. Some cases are simply about reconciling figures and closing an enquiry cleanly. Others quickly become high stakes, especially where HMRC suggests deliberate behaviour, wrongdoing penalties, or fraud processes such as COP9.
How HMRC enforcement begins
HMRC enforcement can start with something that looks routine, such as a letter or phone call explaining what HMRC wants to check and why. However, matters can quickly escalate. The scope can be wide, covering any taxes you pay, your returns, accounts and calculations, and employer PAYE records where relevant. If you have an authorised tax agent, HMRC may contact them instead, which is often helpful because it can keep communications consistent from day one.
A key point that is easy to miss under pressure is that HMRC expects ongoing compliance to continue while a check is running. That means filing returns and paying taxes due on time, even if you are in dispute about earlier periods, because fresh non-compliance tends to complicate negotiations and can narrow the options later.
How HMRC gathers evidence
At the information-gathering stage, HMRC’s civil powers include requesting information and documents and, in some cases, inspection. Its officers are only entitled to review what is ‘reasonably required’ to check a tax position; they cannot go on an open-ended trawl. The legislation also limits what can be demanded by reference to whether documents are within a person’s ‘possession or power’, which matters when HMRC asks for material held by third parties or historic records that may not be readily available.
HMRC can also seek information from third parties, but there are safeguards. Third-party notices generally require either the taxpayer’s consent or approval from the First-tier Tribunal. That approval process is not a formality, and it creates an opportunity to challenge scope, relevance, and proportionality before unnecessary disruption occurs. We can help with strategy on what to provide, what to query, and how to respond without creating avoidable risk through inconsistent explanations or partial disclosures.
HMRC enforcement in fraud cases
Where HMRC suspects fraud and decides not to start a criminal investigation at the outset, it may use Code of Practice 9 (COP9) as a civil route to investigate suspected fraud. COP9 comes with a significant option, known as the Contractual Disclosure Facility (CDF). Under the CDF, the taxpayer is invited to make a complete, accurate, open, and honest disclosure of their tax affairs and any other irregularities. In return, HMRC commits not to open a criminal investigation, provided the terms of the CDF are met.
This is not a box-ticking exercise. Under COP9, HMRC makes clear that if a person enters the CDF and then fails to make a complete and honest disclosure, it reserves the right to commence a criminal investigation. HMRC also expects deliberate behaviour that has led, or may lead, to tax loss to stop immediately, and it expects records to be preserved during the investigation, including computer records. It also describes a range of sanctions and steps it may take, including using powers to obtain information from third parties, such as banks, customers and suppliers, raising assessments for tax it considers due, and taking steps aimed at securing assets in appropriate cases.
Disputing HMRC enforcement
If you disagree with an HMRC decision, there are formal routes to challenge it. In some cases, you must appeal to HMRC before you can appeal to the tribunal, with ADR also available in appropriate cases. Time limits are tight, so a sensible plan usually combines immediate protective steps with a longer-term strategy on evidence and argument.
Our specialist HMRC and disputes solicitors routinely deal with complex and time-sensitive matters, and we can offer initial fixed price consultations in suitable cases. We can help with all aspects of HMRC enforcement, including the following:
- Managing compliance checks and information notices.
- Challenging assessments, penalties, and wrongdoing allegations, including preparing appeals and representing you in the Tax Tribunal where required.
- Negotiating settlements and Time To Pay arrangements, with realistic financial support and clear communication.
- COP9 and CDF matters, including risk assessment, disclosure strategy, and representation through the process.
- Wider HMRC and Border Force disputes, including seizures, excise and licensing related issues.
If you have received an HMRC letter, a formal notice, or you are concerned that enforcement action is imminent, we can help you take control quickly and with minimal disruption to our business operations.
For a confidential free discussion, call us today on 01908 538293, alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.
