My client operates a staff agency providing labour to farmers. HMRC Special Investigations have written to him requesting that he provide all details of each of his customers on a form LP1 together with the most recent invoice that he has raised to each customer. The reason given for the information request is in order for HMRC to update their records and no other reason has been given. Is he obliged to provide this information without any other reason being given?
He does have arrears which are being dealt with separately i.e. paying instalments whilst a formal payment plan is negotiated.
Does anyone have any suggestions?