What is an HMRC information notice?

An information notice is a formal HMRC power requiring a taxpayer or third party to provide information and documents for checking a tax position. The request must be reasonable and relevant. Non-compliance can result in penalties. An HMRC information notice (also known as a 'Schedule 36 notice') is a formal power under TMA 1970, Schedule 36 that allows HMRC to require a person to provide information and documents for the purpose of checking a tax return or investigating a tax position. Types of information notices: (1) Taxpayer notices — issued to the taxpayer, requiring information and documents for checking their own tax position. The taxpayer can agree to the notice, or HMRC can seek Tribunal approval. (2) Third-party notices — issued to a third party (e.g., a bank, employer, accountant, or business associate), requiring information about the taxpayer. Third-party notices require Tribunal approval (unless the taxpayer agrees). (3) Identity unknown notices — issued to a person whose identity is not known to HMRC (e.g., a person who has used a false identity or has hidden assets). (4) Partner notices — issued to a partner in a partnership, requiring information about the partnership's tax position. The notice must specify: (a) the information or documents required, (b) the form in which the information must be provided, (c) the deadline for compliance (typically 30 days), and (d) the tax position or return to which the information relates. The request must be reasonably required for the purpose of checking the tax position — HMRC cannot make 'fishing expeditions' or requests that are not relevant to a specific tax position. Relevant legislation: TMA 1970, Schedule 36 (information and inspection powers); Schedule 36, Paragraphs 1-5 (taxpayer notices); Paragraphs 2-3 (third-party notices); Paragraph 5A (identity unknown notices). Example: HMRC is enquiring into a taxpayer's self-assessment return and suspects that the taxpayer has undeclared bank interest. HMRC issues an information notice to the taxpayer's bank, requiring the bank to provide the taxpayer's bank statements for the tax year under enquiry. The notice requires Tribunal approval (unless the taxpayer agrees to the notice). Common mistake: Assuming that HMRC can request any information it wants. The request must be reasonably required for checking a specific tax position — broad, unfocused requests can be challenged as 'fishing expeditions'.

What can HMRC request in an information notice?

HMRC can request information (answers to questions, explanations) and documents (bank statements, invoices, contracts). The request must be reasonable and relevant to the tax position under enquiry. Certain documents are exempt (e.g., legally privileged). An information notice can require the provision of: (1) Information — the notice can require the person to provide information, including: (a) answers to specific questions, (b) explanations of transactions or entries on the tax return, (c) details of the taxpayer's financial affairs, and (d) any other information that is reasonably required for checking the tax position. (2) Documents — the notice can require the person to provide specific documents, including: (a) bank statements and building society statements, (b) sales invoices and purchase receipts, (c) contracts and agreements, (d) accounting records and books of account, (e) details of capital gains calculations, (f) personal financial records, and (g) any other documents that are reasonably required. (3) Scope — the request must be reasonable and relevant to the tax position under enquiry. HMRC cannot make broad, unfocused requests that are not relevant to a specific tax position ('fishing expeditions'). (4) Exemptions — certain documents are exempt from disclosure: (a) legally privileged documents (communications between a lawyer and their client for the purpose of obtaining legal advice), (b) certain communications with a professional adviser (where the adviser is not a lawyer), (c) documents that are subject to legal professional privilege, and (d) certain personal and confidential documents. (5) Form — the notice can specify the form in which the information must be provided (e.g., electronic format, specific format). The taxpayer or third party must comply with the notice within the specified deadline (typically 30 days), unless they have a reasonable excuse or are challenging the notice. Relevant legislation: TMA 1970, Schedule 36, Paragraphs 1-5 (information and document requests); Schedule 36, Paragraph 23 (exemptions — legally privileged documents). Example: HMRC issues a taxpayer notice requiring the taxpayer to provide: (a) bank statements for the 2023/24 tax year, (b) sales invoices for the self-employment income, (c) details of the rental property expenses claimed, and (d) a reconciliation of the business income. These are reasonable and relevant to checking the self-assessment return. HMRC cannot request bank statements for 2015 (not under enquiry) or personal medical records (not relevant). Common mistake: Providing more information than requested, without considering whether the requests are reasonable and relevant. While it is important to cooperate, providing excessive information can give HMRC additional leads and prolong the investigation.

Can I challenge an HMRC information notice?

Yes. You can challenge an information notice on the grounds that: (1) The request is not reasonable or relevant (fishing expedition). (2) The notice was not properly issued (e.g., no Tribunal approval for a third-party notice). (3) The documents are exempt (legally privileged). You can also appeal to the Tribunal. An HMRC information notice can be challenged on several grounds: (1) Not reasonable — the request is not reasonably required for checking the tax position. If the request is too broad, unfocused, or not relevant to the specific tax position under enquiry, it can be challenged as a 'fishing expedition'. (2) Not relevant — the request is not relevant to the tax position under enquiry. For example, if HMRC is enquiring into business expenses, it cannot request personal medical records. (3) Improperly issued — the notice was not properly issued. For example, a third-party notice requires Tribunal approval (unless the taxpayer agrees). If HMRC did not obtain Tribunal approval, the notice may be invalid. (4) Exempt documents — the requested documents are exempt from disclosure. The main exemption is legal professional privilege — communications between a lawyer and their client for the purpose of obtaining legal advice are privileged and cannot be required to be disclosed. Other exemptions may apply (e.g., certain communications with a professional adviser). (5) Disproportionate — the request is disproportionate to the tax at stake. For example, requesting 10 years of bank statements for a £500 tax issue may be disproportionate. How to challenge: (a) Raise the issue with HMRC — contact the HMRC officer and explain the grounds for the challenge. HMRC may withdraw or narrow the notice. (b) Appeal to the Tribunal — if HMRC does not withdraw the notice, the taxpayer can appeal to the First-tier Tribunal. The Tribunal will review the notice and determine whether it is valid. (c) Seek specialist advice — challenging an information notice is complex, and specialist advice is recommended. Relevant legislation: TMA 1970, Schedule 36, Paragraph 31 (appeals against information notices); Schedule 36, Paragraph 23 (exemptions); Tribunal Procedure Rules. Example: HMRC issues an information notice requesting 10 years of bank statements and all personal financial records. The taxpayer challenges the notice on the grounds that: (a) the request is too broad (a 'fishing expedition'), (b) the request is not relevant to the specific tax year under enquiry, and (c) some of the documents are legally privileged (communications with their lawyer). The taxpayer appeals to the Tribunal, which narrows the notice to 1 year of bank statements and excludes the privileged documents. Common mistake: Not challenging an unreasonable or irrelevant information notice. The taxpayer has the right to challenge, and the Tribunal can narrow or cancel the notice if it is not reasonable and relevant.

What are the penalties for not complying with an information notice?

Penalties for non-compliance: £300 initial penalty, then £60 per day for continuing failure (up to £1,000 per day in serious cases). Taxpayer-geared penalties can also apply. The penalties can be significant, so it is important to comply or challenge the notice. Non-compliance with an HMRC information notice can result in significant penalties: (1) Initial penalty — a penalty of £300 for the initial failure to comply. (2) Daily penalty — a penalty of £60 per day for each day that the failure continues (up to a maximum of £1,000 per day in serious cases). (3) Taxpayer-geared penalty — in addition to the fixed penalties, HMRC can impose a penalty based on the tax at stake. This is a percentage of the tax that would have been lost if the information had not been provided (up to 100% of the tax). (4) Conditions for penalties — penalties apply if the person: (a) fails to comply with the notice without a reasonable excuse, (b) deliberately provides false information, or (c) deliberately withholds information. (5) Reasonable excuse — the person may have a reasonable excuse for non-compliance (e.g., the documents were destroyed in a fire, the person was seriously ill). If a reasonable excuse exists, the penalties may be suspended or cancelled. (6) Timing — the initial penalty is due from the day after the deadline. The daily penalty accrues from a date specified by HMRC (typically 30 days after the initial penalty). (7) Total — the total penalties can be significant — on a 100-day delay, the penalties could be £300 (initial) + £6,000 (100 days × £60) = £6,300, plus any taxpayer-geared penalty. To avoid penalties, the person should: (a) comply with the notice within the deadline, (b) claim any exemptions (e.g., legal professional privilege), (c) challenge the notice if it is unreasonable or irrelevant, and (d) seek specialist advice if in doubt. Relevant legislation: TMA 1970, Schedule 36, Paragraphs 39-49 (penalties for non-compliance); Schedule 36, Paragraph 45 (daily penalties); Schedule 36, Paragraph 50 (taxpayer-geared penalties). Example: A taxpayer receives an information notice requiring bank statements by 31 March 2026. They do not provide the statements by the deadline. The initial penalty is £300 (from 1 April 2026). The daily penalty is £60 per day (from 30 April 2026). If the taxpayer does not comply for 100 days, the total penalties are £300 + £6,000 = £6,300, plus any taxpayer-geared penalty. Common mistake: Ignoring an information notice. Non-compliance can result in escalating penalties, and the penalties can be significant. It is always better to comply or challenge the notice rather than ignore it.

What is legal professional privilege in HMRC investigations?

Legal professional privilege (LPP) protects confidential communications between a lawyer and their client for the purpose of obtaining legal advice. LPP documents cannot be required to be disclosed in an HMRC information notice. Communications with non-lawyer advisers (e.g., accountants) are not privileged. Legal professional privilege (LPP) is a legal principle that protects confidential communications between a lawyer and their client from disclosure. In the context of HMRC investigations: (1) What is privileged — LPP protects: (a) Communications between a lawyer (solicitor, barrister, or other qualified lawyer) and their client. (b) Communications made for the purpose of obtaining legal advice (not just tax advice). (c) Documents prepared in contemplation of litigation. (2) What is NOT privileged — LPP does not protect: (a) Communications with non-lawyer advisers (e.g., accountants, tax advisers) — these are not legally privileged, even if they are confidential. (b) Documents that are not communications (e.g., accounting records, bank statements) — these are not privileged, even if they were prepared by a lawyer. (c) Communications that were not for the purpose of obtaining legal advice (e.g., a letter from a lawyer providing accounting advice). (3) HMRC's LPP process — if HMRC requests documents that the taxpayer claims are privileged, HMRC may: (a) Accept the claim and exclude the documents from the request. (b) Challenge the claim and request that the taxpayer provide the documents for HMRC to review (a 'LPP review'). (c) Seek a Tribunal ruling on whether the documents are privileged. (4) Importance — LPP is a fundamental right that allows taxpayers to seek legal advice without fear that the communications will be disclosed to HMRC. It is essential for obtaining frank and honest legal advice. (5) Specialist advice — if HMRC challenges an LPP claim, the taxpayer should seek specialist legal advice to protect the privilege. The distinction between lawyer and non-lawyer advisers is crucial — communications with an accountant are not privileged, while communications with a lawyer are. This is why taxpayers facing serious HMRC investigations (e.g., COP9) should engage a lawyer (not just an accountant) to ensure that their communications are privileged. Relevant legislation: TMA 1970, Schedule 36, Paragraph 23(2) (exemption for legally privileged documents); common law (legal professional privilege); Solicitors Act 1974 (legal privilege). Example: A taxpayer under COP9 investigation engages a tax lawyer. The communications between the taxpayer and the lawyer (about the investigation, the disclosure, and the legal strategy) are legally privileged — HMRC cannot require them to be disclosed. If the taxpayer had engaged an accountant (not a lawyer), the communications would not be privileged, and HMRC could require them to be disclosed. Common mistake: Assuming that communications with an accountant or tax adviser are legally privileged. LPP only applies to communications with a lawyer — communications with an accountant are not privileged and can be required to be disclosed to HMRC.

Tax Disputes › Investigations

HMRC Information Notices

HMRC can issue information notices requiring taxpayers and third parties to provide documents and information. Understand the types of notices, your rights, and how to respond.

Book a Consultation +44 (0) 800 211 8657

HMRC information notices are formal powers that allow HMRC to require taxpayers and third parties to provide information and documents for the purpose of checking a tax return or investigating a taxpayer's tax position. Information notices are a powerful tool in HMRC's armoury, and non-compliance can result in penalties. However, the notices are subject to safeguards — they must be reasonable, relevant, and properly issued. Understanding when HMRC can issue an information notice, what they can request, and how to respond is essential for any taxpayer facing an HMRC investigation.

Types of Information Notices

HMRC can issue several types of information notices: (1) Taxpayer notices — issued to the taxpayer, requiring information and documents for the purpose of checking their own tax return. (2) Third-party notices — issued to a third party (e.g., a bank, employer, or accountant), requiring information about the taxpayer. (3) Identity unknown notices — issued to a person whose identity is not known to HMRC (e.g., a person who has used a false identity). (4) Partner information — issued to a partner in a partnership.

What Can Be Requested

An information notice can require the taxpayer or third party to provide: (1) Information — answers to questions, explanations, or other information. (2) Documents — specific documents (e.g., bank statements, invoices, contracts). The request must be reasonable and relevant to the tax position under enquiry. HMRC cannot make 'fishing expeditions' — requests that are not relevant to a specific tax position.

Safeguards and Conditions

Information notices are subject to safeguards: (1) Reasonableness — the request must be reasonably required for the purpose of checking the tax position. (2) Relevance — the request must be relevant to the specific tax position under enquiry. (3) Approval — third-party notices and some taxpayer notices require approval from the First-tier Tribunal (unless the taxpayer agrees). (4) Statutory exemptions — certain documents are exempt from disclosure (e.g., legally privileged documents, certain communications with a lawyer).

Responding to an Information Notice

When you receive an information notice: (1) Check the scope — verify that the request is reasonable, relevant, and properly issued. (2) Check the deadline — the notice specifies a deadline for compliance (typically 30 days). (3) Gather the information — collect the requested information and documents. (4) Claim exemptions — if any documents are exempt (e.g., legally privileged), claim the exemption. (5) Challenge — if the notice is unreasonable or irrelevant, challenge it (through HMRC or the Tribunal). (6) Seek advice — specialist advice is recommended, especially for complex or extensive requests.

Key Points

What You Need to Know

HMRC can issue information notices to taxpayers and third parties
The request must be reasonable and relevant — no 'fishing expeditions'
Third-party notices require Tribunal approval (unless the taxpayer agrees)
Certain documents are exempt (e.g., legally privileged documents)
Non-compliance can result in penalties (up to £60 per day for continuing failure)

Expert Answers

Tax Disputes Frequently Asked Questions

Detailed answers with legislation references, practical examples and common pitfalls.

Explore More

All Tax Disputes Topics

HMRC Self-Assessment Enquiries Code of Practice 8 (COP8)Code of Practice 9 (COP9)HMRC Penalties Statutory Reviews of HMRC Decisions First-tier Tribunal (Tax Chamber)Alternative Dispute Resolution (ADR)Worldwide Disclosure Facility (WDF)HMRC Nudge Letters HMRC Offshore Disclosure Campaigns HMRC Discovery Assessments HMRC Information Notices Corporate Criminal Offence: Failure to Prevent Tax Facilitation VAT Disputes & Tribunals IR35 & Off-Payroll Working Disputes Transfer Pricing Disputes

Need Specialist Tax Disputes Advice?

Our tax advisers can help you navigate tax disputes with clear, practical advice tailored to your circumstances.

Book a Consultation Call +44 (0) 800 211 8657