Frequently asked questions

Read the letter for two things: what type of notice it is, and the date by which a response is due. An enquiry, a discovery assessment, a penalty notice and an information notice each carry different rights and different time limits. Send the letter before replying to HMRC directly, as the first response frequently shapes the outcome.

Not necessarily too late. A late appeal may still be admitted where there is a reasonable excuse for the delay and the appeal is made without further delay. The position weakens the longer the matter is left, so a passed deadline is a reason to act now rather than a reason to give up.

The standard time limit is four years, extended to six years where the loss of tax was careless and twenty years where it was deliberate. Certain offshore matters carry a twelve-year limit. Where an enquiry was opened and closed by a closure notice, HMRC cannot generally reopen the same point by way of discovery.

If an assessment is not appealed within the time limit, it becomes final and HMRC may proceed to collection. Penalties may also apply where information requested under a formal notice is not provided.