HMRC’s use of FA 2008, Sch 36 notices

I suspect that we are all familiar with HMRC’s operating manual when it comes to enquiries. First send a TMA 1970 s 9A notice. If that fails to bring the answers to questions move to a FA 2008 Sch 36 notice.

What is the difference? For all the carefully crafted wording in a TMA 1970 s 9A notice often creating a sense of urgency there is no statutory deadline for a response to be made. HMRC may huff and puff and threaten dire consequences but the reality is that if the taxpayer refuses to engage they cannot be forced.

A notice under FA 2008 Sch 36 however comes with teeth. Here the deadline is real and penalties can be applied for a failure to respond. Often HMRC will if asked politely extend the deadline but the...