CCM17030 - Discrepancy Examinations and Enquiries: Information: Why does HMRC carry out Discrepancy Examinations and Enquiries?

Discrepancy examinations and enquiries are part of the department’s compliance strategy. We want claimants to get the right amount of tax credits, and where we think there is a risk that they haven’t, we take compliance action to check. However we have to make the most cost- effective use of compliance resources and not all cases warrant a full review of all aspects of the claim.

Where we are only concerned about a single aspect of a claim or award because we have specific information or data that suggests that that particular aspect of the claim or award is incorrect the most cost-effective way of challenging this is through a discrepancy examination or enquiry.