HMRC investigation: rights of taxpayers

An investigation by HMRC into a taxpayer’s affairs can be a time consuming stressful and sometimes costly process. Many will be tempted to co-operate as much as possible in the hope of a swift resolution. It is important to ensure though that the taxpayer’s legislative rights are not overlooked and HMRC is not reaching beyond its remit.

The recent First-tier Tribunal case of David Hackmey (TC8487) highlighted this issue. The case examined the validity of a FA 2008 Sch 36 formal notice issued by HMRC and found it to be invalid in part.

The judgment presents a timely opportunity for taxpayers and tax advisers alike to take a deep dive into the tax legislation and examine the rights and protections in place and the lessons to learn in case HMRC comes fishing in their pond next.

Fundamentals

Under...