How should you respond to an HMRC enquiry letter?

Never blindly respond to an HMRC enquiry.

Should you send HMRC everything you have?

When a letter lands, it's natural to want to be helpful and send over everything you can think of. But that can backfire.

Say you send extra bank statements HMRC didn't ask for. That can raise questions about other income you received, and now you're spending even more time answering them, even if you did nothing wrong.

What should your reply include?

What matters is answering exactly what's been asked:

1. Accurately and completely
2. Within the deadline
3. Without handing over more than the enquiry requires

HMRC's guide to tax compliance checks says HMRC will write or phone to say what they want to check. If HMRC sends a formal information notice and you do not send the information, you may have to pay a penalty. At the end of a check, HMRC considers why any tax was underpaid and how helpful you have been.

Should you get a professional to reply?

That's a judgement call, and it's easy to get wrong on your own.

So before you reply, speak to a professional who can make sure HMRC gets the right information, in the right format, without leading to unnecessary scrutiny and hassle.

The same guide says that if you use an accountant, HMRC will contact them instead, and that you can have an accountant or legal adviser with you during a visit.

What HMRC tends to look for is covered in what happens if HMRC finds a personal cost in your expenses and does HMRC really look at your social media before opening an enquiry. If records are missing, see lost the receipt: does HMRC still let you claim the expense.

Every enquiry turns on its own facts and on what HMRC has asked for, so this is general information rather than advice on your position. If a letter has arrived, talk to us before you reply.