ICAEW.com works better with JavaScript enabled.

HMRC asks companies and agents to check tax returns

Author: ICAEW Insights

Published: 03 Dec 2025

Letters are being sent where HMRC believes that the corporation tax liability declared by the company in its most recent company tax return is much lower than expected compared to similar companies.
Both the company and its agent, where it has one, will receive a letter. The letter sent to agents will include a list of the companies they act for that have received a letter. The letter warns the company and agent that HMRC may open a compliance check into the company’s tax returns in the next 12 months. 

Action to take 

The company/agent is asked to check the company’s tax returns for errors and: 

To allow the company time to check, and if necessary, correct its tax returns, HMRC will not start a compliance check before the date given in the letter. If no action is taken by that date, HMRC will use the information it has to determine whether to open a compliance check.  

HMRC recognises that the company may not be able to pay the tax it owes immediately. The letter directs companies in this position to HMRC’s guidance on paying by instalments. Interest will be charged on any tax paid late.  

The letter explains that HMRC will charge a penalty where an error is found in the return. Penalties can be reduced depending on whether a disclosure is prompted or unprompted and will take into account the company’s actions in helping HMRC to correct the error. This is explained further in HMRC’s guidance. The letter confirms that HMRC will treat any disclosures made after the receipt of the letter as being prompted.

ICAEW on the Budget

Access all of ICAEW's reaction and expert analysis of the Autumn Budget announcements, including articles, podcasts and a webinar from the Tax Faculty.
All analysis Listen now
The UK's Houses of Parliament, focusing on Big Ben.
The Tax Faculty

ICAEW's Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

  1. New guidance on VAT treatment of supplies of medical staff
  2. Agents may be overlooking IHT on cryptoassets
  3. Taxpayers told to watch out for self assessment scams
  4. MTD: how to deal with digital refusers
  5. Tax news in brief 16 December 2025
  1. Budget 25: Do the tax changes meet the tenets?
  2. The latest on MTD income tax
  3. Tax returns and Finance Bill concerns
  4. The inside track from HMRC
  5. Challenging times for HMRC and agents

Further resources

Latest news
Making tax digital image
TAXwire and Tax Track

Stay up to date with the latest developments by signing up to the Tax Faculty's weekly enewsletter and listening to the Tax Track podcast series.

Listen now Newsletter sign up
  • Free
Practical guidance
Find out more about the Tax Faculty
Tax Faculty resources

The Tax Faculty offers expert guidance and support enabling you to provide the best advice on tax legislation to your clients or business. We offer clear direction in taxing times. Membership is open to everyone.

ICAEW support
Training and events

Browse upcoming and on-demand ICAEW events and webinars focused on developments in tax practice and policy.

Events and webinars CPD courses and more
Open AddCPD icon