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HMRC internal manual

Compliance Handbook

How to do a compliance check: data-gathering powers: data-holder notice

The notice must contain reference to the relevant legislation; that is, Paragraph 1 Schedule 23 to the Finance Act 2011 and The Data-gathering Powers (Relevant Data) Regulations 2012 (SI 2012/847). Schedule 23 defines the data-holder while the regulations define the relevant data.

The notice must specify

  • why you are sending the notice to them (as a data-holder), including the relevant paragraph of Schedule 23 which defines the data-holder, see example below
  • what data is required, citing the relevant paragraph of the regulations
  • how the information should be supplied to HMRC
  • where it should be sent, and
  • by what date.

Example of a notice to a company

Paragraph 1 of Schedule 23 to the Finance Act 2011 allows an officer of HM Revenue and Customs, by notice in writing, to require a relevant data-holder to provide relevant data. For the purposes of paragraph 1, Schedule 23 to the Finance Act 2011:

  • you are a ‘relevant data-holder’ as defined by paragraph (see CH28030 for paragraph number) of Schedule 23 to the Finance Act 2011, and
  • the data described in the schedule below is ‘relevant data’ as defined by paragraph (see CH28030 for paragraph number) of Schedule 23 to the Finance Act 2011 and regulation 3 of the Data-Gathering Regulations 2012 (SI 2012/847).

‘Therefore take notice that under the above provisions I hereby require you by (insert date) to make and deliver to me a return of all data of the kind(s) specified in the schedule below for the period shown in the schedule. You must deliver this at the above address using the means described in the schedule attached. If the company feels it cannot do what this notice asks, or the company cannot respond within the timescale it sets out, please contact me as soon as possible on the above number’

What will happen if you do not do what this notice asks?

If the company does not do what this notice asks, the company may have to pay a penalty of £300. If the company still has not done what this notice asks by the time I have issued this penalty, the company may have to pay a further daily penalty of up to £60 a day until it does.

There is a similar penalty if the company conceals, destroys or otherwise disposes of any document I have asked for, or arranges for it to be concealed, destroyed or disposed of.

Please take care when doing what this notice asks. If the company carelessly or deliberately provides inaccurate information or provides a document containing an inaccuracy, we may charge the company a penalty of up to £3,000 for each inaccuracy. We may not charge the company a penalty if it tells us about the inaccuracy at the time it provides the information or produces the document. If the company later finds an inaccuracy, it must tell me about it without delay.

Appealing against this notice

The company has the right to appeal to an independent tribunal. You can find further information about this in factsheet HMRC1 HM Revenue & Customs decisions - what to do if you disagree. You can get this factsheet by downloading it from our website at or phoning our Revenue and Customs Orderline on 0300 200 3610.

Schedule

Data for the period (insert date) to (insert date) inclusive.

In respect of the data you hold, I require you to give the following particulars in response to this notice.

(Insert details of data required)

Please could I ask you to complete one of the following statements in respect of your response.

Declaration A

To the best of my belief the data as required by this notice is complete and correct.

Signature: ……………………………………

( Director / Company Secretary ) Date: …………………………………………….

Print name: …………………………………..

Contact phone no: …………………………………………………………………………………….

   
   
Declaration B (If you have not made any of the specified payments)

I declare that the Company is not required to provide data within the terms of this notice.

Signature: ………………………………………

( Director / Company Secretary ) Date: …………………………………………….

Print name: ……………………………………..

Contact phone no: …………………………………………………………………………………….

   
   

A template for ‘data-holder notice’ is not available on SEES Letters and Forms, but you must use the ‘Free text template’ for letters from SEES to write and issue the data-holder notice