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HMRC internal manual

Enquiry Manual

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HM Revenue & Customs
Updated
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Opening the Enquiry: communications: timing of issue of factsheets

You must give the taxpayer the relevant factsheet at the appropriate stage of the enquiry. The factsheets do not explain everything about a subject but do give the taxpayer essential information.

If a taxpayer requests a factsheet at any stage during an enquiry you should give it to them. Otherwise you must issue the factsheets as follows.

Factsheet Purpose When to issue For further guidance, see
       
CC/FS1 (a, b and c)      
General information These give general information about HMRC compliance checks. You must issue the relevant general information factsheet, normally with your opening letter.

You must issue the appropriate general information factsheet:

  • issue CC/FS1a if you don’t work in a Compliance Centre or deal with Large Businesses, or
  • issue CC/FS1b for Compliance Centre checks, or
  • issue CC/FS1c for Large Business checks, in LBS, and Large and Complex or Public Bodies with CRMs.
  CH202050
  CC/FS2
Information notices This explains what an information notice is and when we use them. You must issue this when you issue an information notice. You must not issue it with your opening letter unless you are including an information notice, see CH20200. CH202100
  CC/FS3    
Visits - by agreement or with advanced notice This explains agreed and pre-arranged visits to business premises and why we may need to look at business records or assets. You must issue this before an agreed visit, or before a visit where advanced notice has been given, see CH20250. CH202125
  CC/FS4    
Visits - unannounced This explains why we may need to make unannounced visits to business premises and sets out the taxpayer’s rights. You must issue this with the inspection notice, when you serve it. CH202150
  CC/FS5    
Visits - unannounced - tribunal approval This explains why we may make an unannounced visit, with tribunal approval, to business premises and sets out the taxpayer’s rights. You must issue this with the tribunal approved notice, when you serve it. CH202175
  CC/FS7a    
Penalties for inaccuracies in returns and documents This explains about penalties for inaccuracies in returns and documents, the penalty ranges, how they are calculated, and what a taxpayer can do to reduce a penalty. You must issue this when you have established that there is an inaccuracy in a return or document and that this may result in potential lost revenue.
You must issue CC/FS7a and any other penalty factsheets either at the same time as or after you have issued factsheet CC/FS9 - The Human Rights Act and penalties. CH202235
  CC/FS7b
Penalties for not telling us about an under-assessment This explains about penalties for under-assessments, the penalty range, how the penalties are calculated, and what a taxpayer can do to reduce a penalty. You must issue this when you have established that there is an under-assessment and the person failed to take reasonable steps to tell us about it within 30 days.
You must issue CC/FS7b and any other penalty factsheets either at the same time as or after you have issued factsheet CC/FS9 - The Human Rights Act and penalties. CH202245
  CC/FS9
The Human Rights Act and penalties This explains the taxpayer’s rights under Article 6 of the European Convention on Human Rights when we are considering whether we may charge penalties. You must issue this when you find something wrong during an enquiry and have an evidence-based reason to believe that the taxpayer may be liable to a penalty, see CH300700.

You must normally issue the relevant penalty factsheets, CC/FS7a, FS7b, FS11, FS15, FS18 (a or b), or FS19 together with or after you have issued factsheet CC/FS9.

If you issue FS9 together with any other factsheets, it is good practise for your covering letter to refer to CC/FS9 before it mentions any penalty factsheets. CH202275
  CC/FS10
Suspending penalties for careless inaccuracies in returns or documents This explains what happens when we consider suspending penalties for careless inaccuracies. You must issue this when we have established that there is a careless inaccuracy and you are considering whether the resulting penalty can be suspended. CH202300
  CC/FS11    
Penalties for failure to notify This explains when we may charge a penalty for a failure to notify, the penalty ranges for different types of disclosure and behaviour, and what the taxpayer can do to reduce the penalty. You must issue this when you have established that there is a failure to notify and that this may result in potential lost revenue.
You must issue CC/FS11 and any other penalty factsheets either at the same time or after you have issued factsheet CC/FS9 - The Human Rights Act and penalties. CH202325
  CC/FS13
Publishing details of deliberate defaulters (PDDD) This explains when we can publish the details of deliberate defaulters and the process we must follow before we can do this. You must issue this before you start to discuss the possibility that a person’s details may be published or when you have an evidence-based reason to believe that there is a deliberate inaccuracy or failure and the PLR may exceed £25,000.

In some circumstances it will be appropriate to issue CC/FS13 at the start of a compliance check, for example where a person has made a disclosure of deliberate behaviour in response to the information about PDDD in CC/FS1 (a, b or c).

You must issue CC/FS13 and any penalty factsheets either at the same time or after you have issued factsheet CC/FS9 - The Human Rights Act and penalties. CH202375
  CC/FS14
Managing deliberate defaulters This explains when we can include a taxpayer in our programme for monitoring deliberate defaulters. You must issue this as soon as you have an evidence based reason to believe that a person deliberately did something wrong that may result in a penalty for deliberate behaviour.
You must issue CC/FS14 and any penalty factsheets either at the same time or after you have issued factsheet CC/FS9 - The Human Rights Act and penalties. CH202400
  CC/FS15
Self Assessment and old penalty rules This explains about ‘old’ penalty rules for Self Assessment, and how we reach settlements in direct tax enquiries. It replaces booklet IR160. You must issue this when you have established that there is an inaccuracy or failure and the person may be liable to a penalty under TMA1970 or FA1998, see EM4500.
You must issue CC/FS15 and any other penalty factsheets either at the same time or after you have issued factsheet CC/FS9 - The Human Rights Act and penalties. CH202425
  CC/FS17
Penalties for income tax and capital gains tax involving offshore matters This explains the higher penalties we can charge for inaccuracies, failures to notify, and deliberately withholding information relating to offshore matters. You must issue this together with the relevant penalty factsheets, CC/FS7a, FS11, or FS18a.
You must issue CC/FS17 and any other penalty factsheets either at the same time or after you have issued factsheet CC/FS9 - The Human Rights Act and penalties. CH202455
  CC/FS18a
Late filing penalties for income tax and capital gains tax This explains when we may increase the penalty percentage of the second further late filing penalty for deliberately withholding information by failing to file Self Assessment (SA) return. You must issue this when you have reason to believe that a person deliberately withheld information that would have helped us to establish their correct tax liability, by failing to file their SA return within 12 months of the filing date.
You must issue CC/FS18a and any other penalty factsheets either at the same time or after you have issued factsheet CC/FS9 - The Human Rights Act and penalties. CH202460
  CC/FS18b
Late filing penalties for the construction industry scheme (CIS) This explains when we may increase the penalty percentage of the second further late filing penalty for deliberately withholding information by failing to file a return. You must issue this when you have reason to believe that a person deliberately withheld information that would have helped us to establish any liability to make payments, by failing to file their CIS return within 12 months of the filing date.
You must issue CC/FS18b and any other penalty factsheets either at the same time or after you have issued factsheet CC/FS9 - The Human Rights Act and penalties. CH202465
  CC/FS19
Employer and contractor returns and old penalty rules This explains about ‘old’ penalty rules for Employer Compliance reviews and checks on employers and contractors. You must issue this when you have established that an employer or contractor may be liable to a penalty under the ‘old’ penalty rules, see COG914000.
You must issue CC/FS19 and any other penalty factsheets either at the same time or after you have issued factsheet CC/FS9 - The Human Rights Act and penalties. CH202470
  HMRC1
HMRC decisions - what to do if you disagree This explains what taxpayers can do if they do not agree with a decision that they can appeal against. You must issue this if the taxpayer wants more information about their appeal rights. If you issue the HRA message in factsheet CC/FS9 in a meeting you should have a copy of HMRC1 available in case the taxpayer requests it, but you should not issue it unless they ask. Do not issue HMRC1 routinely with decision notices. CH202475