CH229120 - How to do a compliance check: information powers: rules that apply to all notices: Communications Service Providers

This page and chapter are under review as the relevant content is also published in the technical guidance chapters of the Compliance Handbook, within Compliance checks factsheets and in Compliance checks guidance. If you use particular pages regularly, please email hmrcmanualsteam@hmrc.gov.uk to let us know the specific content you find useful.

Telecommunication Operators (TOs) and Postal Operators (POs) are commercial organisations which provide either, or both, electronic and postal communications services to customers. 

Their three main areas of business are: 

  • telephony - including fixed line and mobile 

  • the Internet - including IP addresses, email and web-based services 

  • any form of mail - including a range of postal or courier services 

Information about how the communications service is provided and used is collectively referred to as Communications Data (CD) and can be used in many useful ways to bridge gaps in evidence. 

Most large customer-facing organisations are now TOs because they provide web-based services to their customers. 

Requests for CD can ask third parties to provide confidential customer information which relates to things like: 

  • who the registered user of a communication service is, and account details (for example, their address) 

  • how the service is, or was, paid for (for example, bank account details) 

  • how the service is, or was, used (for example, record of numbers called and received, the location of a mobile phone whilst being used, or the IP address used to access a service) 

You can find more information about what CD is, and how it can be used, in the FIS Handbook. 

Note: 

Traditional TOs whose main business is to provide telecommunications do not usually have access to the contents of any communication they carry, but they will provide the data around it. 

TOs that provide a web-based service can usually provide information about the content of the service as well as how it was accessed by the customer. 

Note: 

You have more chance of obtaining the data you need if your request for CD is for data created in the last 12 months. This means you will need to make timely requests if CD is important for your compliance check. 

Asking for Communication Data 

The possibilities with CD are extensive, and the subject itself is constantly changing in line with new developments in technology and how people communicate. 

Since Finance (No2) Act 2023 received Royal Assent, there is no longer any restriction on using statutory powers to obtain Communications Data in civil investigations. However, the usual rules on proportionality, and the right to privacy, should be carefully observed. 

It is important to note that the changes brought about by F(No2)A23 do not apply to AMLS or NMW, as they are not classed as 'tax for legislative purposes'. 

As this is a recent change, TO and POs may question your use of powers to ask for CD. If this happens, you can refer them to s352 Finance (No.2) Act 2023. If you need further assistance with a challenge on HMRC's ability to request CD, contact the Communications Data Unit (CDU) or seek technical advice from TALA.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)