A brown envelope lands on your desk: HMRC want to know more.

Seasoned tax professionals, particularly those in the controversy space, are likely to be well-versed with the intricacies of formal notices for information and documents, but the prospect of receiving such a request can still be daunting whether it’s your first or fifteenth letter.

The first (suggested) step is: do not panic.

• Simply receiving an information notice is not necessarily proof of any wrongdoing. It is well known that HMRC have a lot of information at their fingertips, including data shared under arrangements with various institutions and other territories. Requests for information might be the natural next step which HMRC considers helpful in ascertaining the facts relevant to a taxpayer.
  
• It is also important to assess at the outset whether the procedural requirements of such notices are met (see Schedule 36, Finance Act 2008). 

The second (again, suggested) step is: run a stock take.

• This will be relatively easy if this is the first notice you have ever received. However, first impressions matter, and how you respond and interact with HMRC is important. Cooperation, an open mind and professional courtesy are non-negotiables. A simple, straightforward communication strategy is still a strategy.
  
• If, on the other hand, you are running a tax function, and this request is just one of many, it could well be worth taking stock of how your team has handled these requests in the past. Is this something the team prioritises, or does it get lost in the list of never-ending tasks that demand immediate attention? Are HMRC receptive to your past approaches, and how your responses are structured? Are requests being responded to in a cohesive, integrated manner (not that there’s any requirement to do so, but it can help to paint the wider picture)? Are the relevant documents and attachments presented in a way that is easy to understand and navigate, is there anything else that can be done to make life easier for the HMRC officer in question?

The third step is (and hopefully it goes without saying): respond on time (or ask well in advance for an extension)!