SM03400 - Special Measures: Behaviours: Delaying or otherwise hindering HMRC’s functions
Special Measures applies where behaviour has delayed or otherwise hindered HMRC in exercising its functions such as collecting tax or determining liability.
If HMRC concludes that tax could have been collected sooner, or that collection was made more difficult due to persistent unco-operative behaviour, this constitutes delay or hindrance.
“Otherwise hindered” means HMRC was able to act without delay, but the business’s actions (such as obstruction or unnecessary challenges) made the process significantly harder.
Example – Large business hindering HMRC in the performance of its functions
A business responds promptly to information requests throughout the enquiries but repeatedly failed to provide key information needed for an accurate assessment. Although responses to requests were timely, critical details were omitted on several occasions, preventing HMRC from establishing the correct tax position.
These omissions significantly hindered HMRC’s ability to perform its functions. As a result, the business was formally notified that it is being placed in a 12-month Special Measures warning period due to its persistent unco-operative behaviour.
HMRC will assess the business’s behaviour during the 12-month period and where it is deemed that the unco-operative behaviour has persisted it will formally place the business into Special Measures.
FA2016/SCH19/PT3/PARA35(a)
FA2016/SCH19/PT3/PARA36(2)(a)
FA2016/SCH19/PT3/PARA37(1)
CRCA05/S5