Revenue ignoring accountants during enquiries
Since 2011 HMRC have been trialling an initiative designed to improve and speed up the tax enquiry process for small and medium-sized businesses (SMEs), called the Single Compliance Process (SCP).
SCP is aimed at improving the quality and consistency of HMRC enquiry work by adopting a more collaborative approach with businesses and their agents, increasing the efficiency and effectiveness of their officers, reducing unnecessary delays and focussing solely on the aspects that the Revenue needs to focus on.
During the trials of the SCP HMRC's opening approach has been to contact the taxpayer directly even where there was an authority in place for an agent to act on their behalf. This has caused concern to the group responsible for monitoring the SCP pilot to such an extent that HMRC have now agreed to alter their approach during Corporation Tax and Income Tax compliance checks across all SME cases.
The opening letter will now give SME taxpayers 7 days to tell HMRC if they wish to deal directly with the department. Failing a reply, HMRC will contact the agent by phone within 14 days to progress the case. If contact or progress can't be made, then HMRC will go back to the taxpayer.
This approach is in line with HMRC's charter in that the Revenue will seek to keep taxpayers’ costs to a minimum, and accept that someone else can represent them.
Typically, HMRC send you a letter dated the 1st of the month that demands action by the 14th and you’ll receive it on the 10th. Nice.