Tax investigation

Tax investigation

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A new client has just come to us to handle a Tax Investigation into his 2010 return. It appears to be a relatively small error capable of being quickly resolved with Local Compliance. The S9A letter was dated 3rd May 2011, which is more than 12 months after the return due date. Can they proceed under this?

Also the client claims to have given all the necessary information to the previous accountant so will they avoid any penalties as they have done " everything reasonable". It is an obvious error in preparation of the return 

My natural reaction is negotiation

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By Alan Ferris
14th Jun 2011 14:56

12 Months from receipt of return
It all depends on when the return was submitted, if it was not submitted till after the due date then it may well be in time for an enquiry.

The 12 months only starts running once HMRC have recieved it, not when they are due to receive it.

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By Steve Knowles
15th Jun 2011 13:00


Negotiate by all means, but HMRC stance is always that the Taxpayer has final responsibility for the return - if information was missed off in error by the accountant, a "reasonable person" should have spotted this before approving the return for filing, unless it is sonething particularly complicated.

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