What should you do if you receive an information notice? Julian Hickey talks you through the steps to take.
An information notice should tell you: (a) what documents and/or information are required, (b) how and when to give HMRC what is required, and (c) information about any appeal rights.
They are issued under Finance Act 2008, Schedule 36. Broadly, HMRC’s powers enable them to issue:
•Taxpayer Notice: an HMRC officer may by notice in writing require a person to provide information, or to produce a document, if it is reasonably required by HMRC for the purpose of checking the taxpayer’s tax position or for the purpose of collecting a tax debt of the taxpayer.
• Third-party notice: an HMRC officer may by notice in writing require a person to provide information, or to produce a document, if it is reasonably required by HMRC for the purpose of checking the tax position of another person whose identity is known to HMRC or for the purpose of collecting a tax debt of the taxpayer. Such a notice may only be issued with the agreement of the taxpayer or the approval of the First-tier Tribunal, and are subject to certain conditions (e.g. that the FTT is satisfied that HMRC is justified in giving the notice, and the third party has been given a reasonable opportunity to make representations) (para 3).
• Financial Institution Notice: HMRC may by notice in writing require a financial institution: (a) to provide information, or (b) to produce a document, if conditions A and B are met:
- Condition A is that the information or document is, in the reasonable opinion of the officer giving the notice, of a kind that it would not be onerous for the institution to provide or produce.
- Condition B is that the information or document is reasonably required by the officer: (a)for the purpose of checking the tax position of another person whose identity is known to the officer, or (b)for the purpose of collecting a tax debt of the taxpayer.
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