CH265020 - How to do a compliance check: applying to tribunal for approval to give a Sch36 FA08 notice and preparing for the hearing: before you make the application

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.

Before you make the application you should consider the following:

  • Has the informal approach, see CH207200, for obtaining information been tried?
  • Is an Unapproved Taxpayer notice appropriate? See CH225420
  • For Third Party notices have you asked the person to approve the notice? See CH225420
  • Is there is any other way the information could be obtained or the inspection carried out?
  • Is the case worthwhile? It is for business units to decide what is worthwhile in terms of cost effectiveness, Litigation and Settlement Strategy (LSS) principles and HMRC’s reputation

You should discuss the case with your manager and decide whether or not you should apply to the tribunal for approval to issue a notice. In particular, you should consider whether the notice would meet the criteria for an application to the tribunal as outlined at:

If you and your manager agree that you should seek tribunal approval, you should usually first tell the person to whom the notice will be sent that the information or documents are required and give them reasonable opportunity to make representations to you. Complete IIP02 Taxpayer Opportunity Letter for Taxpayer Notices, and IIP27 Opportunity Letter for Third Party Notices and Financial Institution Notices, which are available in SEES>Forms and Letters.

It is possible, however, to ask the tribunal to approve the issue of a notice without advising the person that the information or documents are required if it might prejudice the assessment or collection of tax.

For Third Party notices you must also provide the taxpayer with a summary of reasons letter for seeking the information and documents. Complete IIP29 Summary of Reasons Letter and IIP29 (Form), available in SEES>Forms and Letters.

You may ask the tribunal to approve the issue of a Third Party notice without providing an IIP29 if giving the IIP29 might prejudice the assessment or collection of tax. You can also ask the tribunal to approve a non-disclosure clause in the notice, see CH265060.