Letters and requests
HMRC Compliance Check Letter: What to Do First
The first steps to take after receiving an HMRC compliance check letter, from identifying scope to protecting your deadline.
At a glance
- The wording of the letter usually indicates which tax and period is actually under review
- Missing the stated response deadline can narrow your options significantly
- Responding only to what's actually been asked helps keep the check's scope proportionate
- Reading the letter carefully before gathering records saves time later
- Keeping a single point of contact for correspondence helps avoid confusion over a longer-running check
- You can ask HMRC for a progress update, or in some cases apply for a closure notice, if a check runs on too long
A compliance check letter is HMRC's general term for the start of a review into some aspect of your tax affairs, and the specific wording of the letter usually indicates which tax and which period is under review. The single most important first step is identifying exactly what has been asked and by when, since compliance check letters typically include a response deadline that, if missed, can narrow your options or lead to estimated assessments.
Before responding, it's worth reading the letter more than once to separate what HMRC has actually requested from what you assume they might be interested in — a response that volunteers more than was asked can broaden the scope of the check unnecessarily. Gathering the specific records referenced, checking them against your return, and only then drafting a response tends to produce a cleaner outcome than responding immediately under pressure.
The tone and structure of compliance check letters can vary depending on which part of HMRC has issued them, since different teams handle different taxes and risk profiles, but the underlying principles are consistent — HMRC must have a genuine reason for the check and must limit its requests to what's reasonably needed. Where a letter references a specific piece of legislation, such as Schedule 36 of the Finance Act 2008, that reference indicates the formal legal basis for the request and is worth noting, since it can affect what rights and obligations apply on both sides.
It's also worth checking who at HMRC has issued the letter and keeping a single point of contact for any follow-up questions, since compliance checks can sometimes involve more than one HMRC officer or team over their lifetime. Where a check drags on longer than expected, you're entitled to ask HMRC for an update on progress or, in some circumstances, apply to the tribunal for a direction that the check should be closed.
How to prepare
Taking a structured, evidence-led approach from the outset — rather than reacting to each request as it arrives — tends to produce a faster and less stressful outcome.
- 1
Identify which tax and time period the letter actually relates to
- 2
Note the response deadline and add a buffer for internal review before sending anything
- 3
List out precisely what's been requested, item by item
- 4
Gather only those specific records rather than compiling everything you have
- 5
Draft a response that answers what's asked, clearly and completely
- 6
Note the name and contact details of the HMRC officer handling the check
- 7
Keep a simple log of correspondence dates and what was sent or received
What documentation to gather
- The compliance check letter itself, with the response deadline clearly noted
- Records specifically referenced in the letter
- Your submitted return or accounts for the period in question
- A short written summary of exactly what's being asked, before you respond
- Any previous correspondence with HMRC on the same matter
- Details of the HMRC officer or team handling the check
- A log of key dates, including when information was requested and provided
Common mistakes to avoid
These are the errors we see most often in practice — being aware of them in advance can help you avoid an entirely preventable setback.
Responding immediately without reading the letter more than once
Providing broader access to records than the letter actually requested
Assuming the letter relates to the most recent return when it may cover an earlier period
Not asking for clarification when the scope of a request is genuinely unclear
Treating every compliance check the same regardless of which tax or team is involved
Losing track of correspondence dates and details on a check that runs over several months
Not asking for an update when a check appears to have stalled without explanation
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What happens next
Knowing the typical sequence of events helps you feel more in control and know roughly what to expect at each stage.
You identify exactly what's being asked and the applicable deadline
You gather and provide the specific records requested
HMRC reviews what's provided and may ask follow-up questions
The check concludes with either no changes, an agreed adjustment, or a formal decision
Any formal decision carries its own appeal rights and deadline
If the check runs on unusually long, you can request a progress update from HMRC
In some circumstances, you can apply to the tribunal for a direction requiring HMRC to issue a closure notice
Frequently asked questions
The questions we're asked most often about this specific situation, answered in plain English.
What's the difference between a compliance check and an enquiry?
HMRC often uses 'compliance check' as a general term that can cover various types of review, including formal enquiries — the specific legal basis is usually referenced in the letter itself.
Can I ask HMRC to clarify what they want?
Yes, you're entitled to ask HMRC to clarify the scope of a request if it's unclear, rather than guessing and potentially providing more than's needed.
What happens if I miss the deadline in the letter?
Missing a stated deadline can lead to HMRC making assumptions or estimated assessments, so if you need more time, it's better to ask for an extension before the deadline passes.
Does a compliance check always relate to my most recent tax return?
Not necessarily — HMRC can open a check into any return within the relevant time limits, so it's worth checking the letter carefully to confirm exactly which period is under review.
Can HMRC widen a compliance check once it's started?
Yes, if the information provided raises new questions, though any expansion should still be reasonably connected to genuine concerns about the tax position.
Is it better to respond in writing or by phone?
A written response creates a clear record of exactly what was said and provided, which is generally more useful than a phone conversation if the matter later needs to be reviewed or disputed.
Can I request a meeting with HMRC during a compliance check?
Yes, meetings can sometimes help resolve questions more efficiently than written correspondence alone, though you're not obliged to attend one and can request that questions be put in writing instead.
What is a closure notice?
It's the formal document that ends an enquiry, either confirming no changes are needed or setting out HMRC's conclusions and any amendment being made.
Can I be represented by an accountant during a compliance check?
Yes, and it's common for correspondence to be handled by an agent on your behalf, provided HMRC has been given the appropriate authority to deal with them.
Does a compliance check show up anywhere publicly?
No, compliance checks are confidential between you and HMRC and don't appear on any public record unless matters escalate to a published tribunal decision.
Can a compliance check be opened without any specific concern?
HMRC operates a mix of risk-based and random checks, so a letter doesn't always mean a specific red flag has been identified, though most are driven by some data-based trigger.
What if I've already destroyed old records the letter asks for?
Explain honestly what's happened and provide whatever alternative evidence you can, such as bank statements or third-party confirmations, since HMRC will work with the best available evidence.
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