Compliance checks

In this lesson

1. 0:00 Compliance checks explained
2. 0:18 Notice requirements and timelines
3. 0:44 Late submission notice rules
4. 1:12 Compliance check outcomes
5. 1:47 Discovery assessments overview
6. 2:15 Time limits for assessments
7. 2:50 Key differences summarised

About this lesson

A compliance check is HMRC's way of reviewing your self-assessment tax return to verify everything is correct. It's not necessarily a sign of wrongdoing; it could be random or triggered by something that looks unusual. HMRC must give written notice by the first anniversary of your submission date, or by the quarter day following that anniversary if your return was late. At the end of the check, you'll be informed of any amendments needed, potential penalties, additional tax, or interest. If you disagree with any changes, you have the right to appeal. A discovery assessment is different. It means HMRC has found new information or spotted something incomplete or wrong in your return, and believes you've underpaid tax. The standard time limit for raising a discovery assessment is four years from the end of the tax year, but this extends to six years for careless errors and up to twenty years for deliberate understatement or fraud. Understanding this distinction is crucial for your tax compliance responsibilities and exam success.

Duration: 3m