Enquiry other than S9(a)

Strange requests

Didn't find your answer?

A new subcontractor client has appointed me to assist him with "enquiries" into his past three years tax returns. In normal circumstances the two earlier years return would be outside the enquiry window but HMRC have stated that their check is being made in accordance with the Collection & Management Powers as set out in the Commissioners for Revenue and Customs Act 2005 (no specific section quoted) rather than S9(a) and the individual enquiries are narrated "Repayment Security Check of Self-Assessment tax return"

In addition they have also asked for ID from the client (????), a copy of the bank statement for the account where the refunds were paid and a completed form R38.

Is this a way around the enquiry window for HMRC? A cursory search on the web did not yield anything worthwhile.

I am baffled.

Replies (5)

Please login or register to join the discussion.

avatar
By Montrose
12th Jul 2017 15:53

There is no Collection & Management Powers for Revenue and Customs Act 2005. There is a Commisioners for Revenue and Customs Act 2005

This sounds like a typical scam, especially if you look at what the client is being asked for. Report this to the police!

Thanks (0)
Replying to Montrose:
avatar
By razertoo
12th Jul 2017 16:07

Montrose wrote:

There is no Collection & Management Powers for Revenue and Customs Act 2005. There is a Commisioners for Revenue and Customs Act 2005

This sounds like a typical scam, especially if you look at what the client is being asked for. Report this to the police!

Post edited. Its definitely from HMRC!

Thanks (0)
avatar
By free-rider
12th Jul 2017 17:01

One subbie client received similar letter asking for proof of ID and PoA on top of the usual breakdown of expenses etc., and also a copy of the bank statement for the account for the repayment to go to which was noted on the return. This is our (Agent's) account.

Letter is definitely genuine. Sent everything to HMRC a week ago and will see what they will come up with.

Thanks (2)
avatar
By michaelblake
12th Jul 2017 19:07

HMRC has no power to ask for information or documents for a year outside of the normal time limits for an enquiry unless a discovery has been made and even then the request should be made within the terms of FA 2008 Schedule 36. The CRCA 2005 was an Act of the Parliament which combined the Inland Revenue and HM Customs and Excise into a single government department, HM Revenue and Customs. It does not confer any specific powers of enquiry on HMRC and therefore any enquiry into a tax return has to be within the terms of S9A TMA 1970 and any request for information for the enquiry year or a discovery year should be within the terms of FA 2008 Schedule 36. I would be tempted to write to HMRC to say (a) You understand the the purpose of CRCA 2005 was as noted above; (b) you do not understand their reference to the Act in the context of the requests made and ask which specific section within that act they are quoting as the authority for the enquiries they are making (c) ask what the specific purpose of their enquiry is, and what they are trying to establish and why (d) what they believe the statutory authority to be for the enquiry or requests they are making if other than s9A TMA 1970 or FA 2008 Schedule 36 and why no reference has been made to either of those sections when requesting the information.

Thanks (3)
By SteveHa
12th Jul 2017 21:13

Honestly, I would tell them (politely) to go to hell unless they want to issue, and defend, a proper notice. (As Michael has said, a proper notice under Sch 36, which has to be defensible)

EDIT: Sorry, Michael. I just read your full reply. I think I just paraphrased.

Thanks (1)