Andrew Needham looks at what powers HMRC has and what records it can require a business to produce during an inspection.
HMRC was given new powers in 2009, following the enactment of FA 2008, Sch 36. HMRC has the power to enter a person’s business premises and inspect the premises, assets, and documents.
HMRC inspections
The inspection should be carried out for the purpose of checking the business’s tax records and at an agreed time or with seven days’ notice. HMRC can inspect the premises and assets of the business as well as the records.
Any information requested must be ‘reasonably required for the purpose of checking the taxpayer’s position’. If a business does not provide the information within a reasonable timescale, HMRC can issue an information notice specifying what records it wants to see. This would normally only be
