Nobody enjoys getting a letter from HMRC saying they’re looking into your tax return. But the reality is, tax enquiries happen more often than you might think — and not always for the reasons you’d expect. Sometimes it’s down to a genuine mistake, other times it’s just bad luck.
In this article, we’ll break down what HMRC enquiries are, the different types you might come across, what tends to trigger them, and how to make sure you’re ready if one lands in your inbox.
What Is an HMRC Enquiry?
An enquiry from HMRC is their way of double-checking your tax return. They might be looking at one specific figure that doesn’t look quite right, or they could decide to review the whole thing — especially if they think something has been underreported.
It’s worth pointing out that an enquiry doesn’t automatically mean you’ve done anything wrong. In fact, some checks are selected randomly. But it does mean you’ll need to provide more information or evidence to back up what you’ve submitted.
Common Triggers for Enquiries
So, what makes HMRC take a closer look? Here are some of the usual suspects:
- Numbers that don’t add up – Mistakes or inconsistencies can set off alarm bells. This might be a mismatch with what HMRC already knows (like your PAYE income), or something that doesn’t stack up within the return itself.
- Unusually high claims – If you’re claiming expenses or tax reliefs that are way above the norm for your profession or industry, HMRC may want to dig a little deeper.
- Late submissions or payments – Repeatedly missing deadlines can make HMRC wonder whether you’re also getting other things wrong.
- Information from third parties – HMRC collects a lot of data from employers, banks, and even foreign tax authorities. If that information doesn’t match your return, they’ll want to know why.
- Cash-heavy businesses – Industries where cash is common (like hospitality or construction) tend to get more scrutiny.
- Lifestyle clues – HMRC has been known to look at social media or other public information. If someone reports very little income but is clearly living well beyond their means, that can trigger a closer look.
How to Handle an Enquiry
If HMRC does get in touch, the first step is not to ignore it. It’s important to read the letter carefully, understand what they’re asking for, and respond within the timeframe they give.
It’s also a good idea to speak to your accountant or tax adviser straight away. They can help you understand the scope of the enquiry and how best to respond. Often, it’s just a matter of providing the right documents or explanation.
If there’s been a genuine mistake, being honest and cooperative will usually work in your favour. HMRC tends to take a more lenient view when people hold their hands up early on.
Conclusion
While no one looks forward to a tax enquiry, they’re more common than most people realise. Whether it’s a quick question or a deep dive into your finances, being organised, honest, and proactive goes a long way.
Remember: HMRC enquiries are part of the wider effort to make sure everyone pays the right tax — not a personal attack. With the right support and a clear understanding of what to expect, they’re usually manageable.
