What your HMRC letter actually is
Different HMRC letters sit on completely different statutory footings and call for completely different replies. Establishing which one has arrived is the first thing to do — before any response is drafted.
This page is general information, not advice on your circumstances. HMRC correspondence varies, and two letters that read similarly can be very different documents. The reliable way to know what you have is to have the actual letter read.
A "one to many" nudge letter
Not a formal enquiry- What it tends to look like
- Opens by saying HMRC has information suggesting you may need to review something, and invites you to check your position or make a disclosure. Usually does not name a specific year under enquiry.
- Where it sits
- Not a formal enquiry. HMRC has sent the same letter to a population of taxpayers it believes share a risk characteristic.
- Why it matters
- No statutory clock has started. That does not make it safe to ignore: how you respond, or whether you respond, can shape whether a formal enquiry follows.
A Section 9A enquiry notice
Formal enquiry- What it tends to look like
- States that HMRC is opening an enquiry into your Self Assessment return for a named tax year, usually citing Section 9A of the Taxes Management Act 1970.
- Where it sits
- A formal, statutory enquiry into an individual or sole trader return.
- Why it matters
- For a return filed on time, HMRC generally has 12 months from delivery to open this kind of enquiry. Once open, it stays open until HMRC issues a closure notice.
A company tax return enquiry
Formal enquiry- What it tends to look like
- Notifies the company that HMRC is enquiring into its Company Tax Return for a named accounting period, typically citing Paragraph 24 of Schedule 18 to the Finance Act 1998.
- Where it sits
- The corporation tax equivalent of a Section 9A enquiry, addressed to the company rather than to a director personally.
- Why it matters
- Questions on a company return frequently travel to the directors: loans to participators, dividends, benefits, PAYE and VAT. The company and director positions may need considering together.
A Schedule 36 information notice
Statutory notice- What it tends to look like
- Formally requires you to produce specified documents or information by a stated date, usually citing Schedule 36 to the Finance Act 2008.
- Where it sits
- A statutory requirement, not a request. Penalties can follow non-compliance.
- Why it matters
- Some information notices can be appealed, and the scope of what is reasonably required can sometimes be narrowed. Both are time-limited.
Code of Practice 8 (COP8)
Specialist investigation- What it tends to look like
- Enclosed with or referred to in a letter opening an investigation, where HMRC is examining a case it considers significant but is not alleging fraud.
- Where it sits
- A specialist investigation, handled by investigators rather than routine compliance officers.
- Why it matters
- Materially more serious than a routine compliance check. If evidence of deliberate conduct emerges, HMRC can change its approach.
Code of Practice 9 (COP9)
Most serious civil route- What it tends to look like
- An offer of the Contractual Disclosure Facility, where HMRC suspects deliberate conduct bringing about a loss of tax.
- Where it sits
- The most serious civil route HMRC operates. Strict deadlines apply to accepting or rejecting the offer.
- Why it matters
- Take specialist advice immediately, and before responding in any form. This is the category where the timing of advice matters most.
A discovery assessment
Assessment, not an enquiry- What it tends to look like
- Assesses tax for a year outside the normal enquiry window, often citing Section 29 of the Taxes Management Act 1970.
- Where it sits
- HMRC asserting it has discovered a loss of tax it could not reasonably have been aware of when the enquiry window closed.
- Why it matters
- Carries appeal rights with strict time limits, commonly 30 days. The validity of the discovery itself is sometimes the stronger ground.
A penalty notice or penalty explanation
Penalty- What it tends to look like
- Sets out a penalty, the behaviour HMRC has attributed to you, and the reduction it has allowed for disclosure.
- Where it sits
- A decision that carries rights of statutory review and appeal, both time-limited.
- Why it matters
- The behaviour category, the reduction for quality of disclosure and the availability of suspension may all still be open, even though the notice reads as settled.
Common questions
Is a nudge letter the same as a tax investigation?
No. A "one to many" nudge letter is not a formal enquiry and does not start a statutory enquiry period. It is sent to a group of taxpayers HMRC believes share a risk characteristic. How it is answered can nonetheless influence whether a formal enquiry follows.
How do I tell a formal enquiry from an informal request?
A formal enquiry notice cites the statutory provision it is issued under and names the return and period. An informal request does not. If a letter cites Schedule 36, it is a statutory information notice rather than a request, and different consequences follow.
What if the deadline on my letter has already passed?
A missed deadline changes what the first reply needs to do, but it is rarely the end of the matter. Late appeals can sometimes be made, and penalties for late compliance can sometimes be challenged. It is worth taking advice rather than assuming the position is closed.
Can I just ignore a letter I think is a mistake?
Formal notices carry statutory consequences whether or not the underlying position is correct, and some carry penalties for non-compliance. If you believe a letter was sent in error, that is a position to put to HMRC in a considered reply rather than a reason not to respond.
Not sure which one you have?
Send a photo of page one on WhatsApp. We will tell you what it is and what the deadline means, within one working hour during monday to friday, 9am to 5pm.
We only need the letter. Please do not send bank statements, identity documents or your UTR at this stage.