MTT55120 - Administration: Compliance: Compliance checks: Notice and scope
Where a self-assessment return has been submitted for an accounting period, HMRC may enquire into the return by providing a written notice within the time window.
A compliance check may cover anything in the return.
See MTT53000 for further guidance on the self-assessment return.
This is set out in paragraphs 16-17, schedule 14 to Finance (No.2) Act 2023.
Notice and scope of a compliance check
HMRC must give the filing member written notice of the intention to enquire into a return by issuing a notice of enquiry (a ‘compliance check notice’). The notice must be given within a statutory time limit, often called the ‘compliance check window’ (see MTT55130).
The compliance check notice will be issued to the filing member in the form of a letter. This process is not automated. Care should be given to the wording to ensure it is in line with standard HMRC guidance.
Where a compliance check notice has been issued for a return, further notices should not be issued for the same return, except where they are being issued in relation to an amendment.
Scope of a compliance check
A compliance check into a return can extend to anything in the return, or anything required to be contained in the return. This includes anything related to the amount of MTT chargeable and whether MTT was chargeable in the period.
The compliance check notice will usually specify the matters being enquired into, but this is not obligatory. Where the matters are specified in the compliance check notice, this does not prevent HMRC from including other matters in the compliance check.
If the compliance check is due to an amendment to the MTT return, the scope of the compliance check is limited to matters relating to or affected by that amendment. This is unless the compliance check window for the original return is still open, or an enquiry into a return has been completed.
HMRC cannot open a compliance check into a return if a compliance check has previously been opened into that return, except if an amendment to the return is made, in which case a compliance check can be opened in relation to the amendment. A discovery assessment for the period may still be made.