HM Revenue and Customs have the right to open an enquiry into any return.
A tax enquiry is a process by which HMRC check in detail that the information on a tax return is correct and complete. They do this by asking questions about your return, through meetings and a review of your records. HM Revenue and Customs have the right to open an enquiry into any return.
HMRC uses software called Connect (which includes social network analysis) to identify anomalies between a taxpayer’s income as declared to HMRC and other sources of information.
The enquiry may be
• A full enquiry, which checks the return as a whole; or
• An aspect enquiry
An aspect enquiry checks the information on one or more specific points. For instance, HMRC may have information perhaps about interest from a building society which is not consistent with the information on your return. It will ask for more information or explanations specifically about this.