HMRC compliance checks: what prompts them, and how to be ready

A compliance check is HMRC asking to see how a figure was reached. It may be a letter about one item, a review of a VAT return, or a wider enquiry into a year. Most are resolved quickly when the records are good and the answers are clear.

What prompts them

• Figures that do not match data HMRC already holds, from banks, platforms, payroll or letting agents.
• Results that look unusual for the sector, or change sharply from one year to the next.
• Large repayment claims, such as VAT or R&D.
• Late filing, late payment or repeated errors.
• Campaigns aimed at particular groups, often starting with a “nudge” letter.

More checks are coming

Budget 2026 funds 670 more compliance officers by 2029-30, building on 5,500 already committed, and a consultation on collecting more property income data from third parties. New rules from 1 April 2028 will require taxpayers to correct returns when they find inaccuracies.

Being ready

• Keep records digitally, organised by year, with receipts attached to transactions.
• Answer a nudge letter, even if you think it does not apply to you.
• Talk to us before replying to HMRC: the first answer often shapes the rest.
• If you find an error, correct it promptly; voluntary disclosure means lower penalties.