Can anyone direct me to where I can check the time limit for HMRC to open investigation of employer records?
Got one started May 19 into tax year 17-18 and wondering if 1 year limit applies.
Thanks in advance
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Yes, a PAYE enquiry so last filing for tax year 17-18 was end of March 18. Been looking for info on time limits for PAYE enquiries but no luck.
No doubt missing an obvious link with it!!!
The one year enquiry limit, by which I assume you mean that in s 9A TMA, does not apply because there is no return or self-assessment within the meaning in s 9.
HMRC may make such informal enquiries as they like, and may then use Sch 36 FA 2008 to enforce replies or to carry out an inspection of the records. There is no express time limit in Sch 36, but where a document requested is more than 6 years old, a senior officer has to approve the notice.
There is an implicit time limit, at least in the opinion of at least one judge in the Tax Tribunal - me. See Mr & Mrs Hegarty v HMRC [2018] UKFTT 774 (TC) in which I agreed with a submission from Keith Gordon that that "there must be a sensible or reasonable prospect of HMRC making a valid discovery assessment" in relation to the information and the tax year concerned.
That assessment would probably be under reg 80 of the PAYE Regulations, to which, inter alia, the time limits in Part 4 TMA apply (see Reg 80(5)). So HMRC have four years to make the assessment, or 6 years if there is carelessness or 20 years if there is dishonesty.
So they have plenty of time.
