“An HMRC compliance check doesn’t have to be daunting. With the right representation, it becomes a structured process that can be managed calmly and effectively. At Holland & Co, we handle every stage with professionalism and precision, protecting your position and ensuring the best possible outcome.”

— Nigel Holland, Principal, Holland & Co Chartered Accountants

Why HMRC Carries Out Compliance Checks

HMRC conducts compliance checks to verify that taxpayers are paying the right amount of tax at the right time. These checks can cover a wide range of areas, including:

• • Income Tax and Self Assessment returns

  • Corporation Tax and VAT returns

  • PAYE and payroll compliance

  • Capital Gains Tax (CGT) on property or investments

  • Claims for reliefs, allowances, or expenses

HMRC’s advanced data systems cross-check information from multiple sources — including banks, employers, estate agents, investment platforms, and overseas tax authorities — to identify inconsistencies.

What Can Trigger a Compliance Check

A compliance check may be triggered by:

• • Differences between reported income and information held by HMRC

  • Bank interest or investment income not declared on tax returns

  • Large or unusual claims for expenses or reliefs

  • Property transactions or capital gains that do not align with records

  • Sudden changes in income patterns or business performance

  • Random selection as part of HMRC’s routine audit programme

For individuals, it is often a result of HMRC’s automated systems identifying potential anomalies between your tax return and third-party data. For businesses, discrepancies between VAT returns, payroll submissions, and accounts can prompt a review.

What to Expect During a Compliance Check

HMRC will usually begin with a written notice explaining:

• • What aspect of your tax affairs they are reviewing

  • The specific period or return under examination

  • The documents or explanations they require

In many cases, HMRC requests supporting evidence such as bank statements, invoices, receipts, or accounting records. The process may involve written correspondence, telephone discussions, or in some cases, face-to-face meetings.

While the tone of the letter may seem formal, it is vital to respond promptly and professionally to avoid escalation.

How Holland & Co Can Help

At Holland & Co Chartered Accountants, we specialise in representing clients during HMRC compliance checks. Our approach is proactive, professional, and focused on achieving the best possible outcome for you.

We will:

• • Review the HMRC notice and identify the exact scope and potential risks of the check.

  • Prepare and present accurate explanations supported by documentation.

  • Liaise directly with HMRC on your behalf, ensuring all correspondence is handled correctly.

  • Negotiate settlements or corrections where necessary, minimising penalties and interest.

  • Advise on future compliance to prevent similar issues from arising again.

Our experience in dealing with local compliance offices and tax investigations allows us to anticipate HMRC’s approach and advocate effectively for our clients.

Common Outcomes

Most compliance checks result in one of the following:

• • No further action – HMRC is satisfied with your explanation or records.

  • Adjustment to your return – HMRC identifies a minor error and requests a correction.

  • Tax assessment and penalties – HMRC concludes that tax has been underpaid and issues a demand for payment with possible penalties.

Prompt, well-documented responses and expert representation often lead to quicker resolutions and significantly reduced penalties.

Prevention Through Good Record-Keeping

The best defence against compliance issues is accurate and timely record-keeping. Maintaining clear documentation for income, expenses, and capital transactions reduces the likelihood of HMRC queries and strengthens your position should one arise.

Our bookkeeping, VAT compliance, and tax planning services are designed to keep your financial affairs fully compliant and audit-ready at all times.

Your Trusted Advocate in HMRC Matters

If you have received a letter from HMRC or are concerned about a potential compliance check, contact Holland & Co Chartered Accountants immediately. Early professional representation can make all the difference in protecting your interests and achieving a favourable outcome.

Contact Details:
Holland & Co Chartered Accountants
102 Widnes Road, Widnes, Cheshire, WA8 6AX
Tel: 0151 420 6666
Email: nigel@hollandandcompany.co.uk