HMRC has been criticised over it's new Pilot Interventions Project which is supposed to make it easier for dealing with taxpayers who file incorrect returns.

With the pilot project, HMRC have been contacting taxpayers who they believe have made mistakes in their tax returns as opposed those they believe have been illegally evading tax. Rather than launching a formal investigation they been sending letters requesting more information. They are also using informal telephone based enquiries where they hold information from a third party about undeclared income and such telephone conversations do not offer the same statutory protection that comes with a formal investigation.

However, HMRC have not been making it clear that co-operating with the Pilot scheme is entirely voluntarily! The Chartered Institute of Taxation which has been critical also says some of the letters are just as threatening as formal investigation letters.

Many view them as a purely voluntary fishing expedition by HMRC and you should be wary of co-operating with them.

If you have been contacted by HMRC to take part in a Pilot Intervention Project we suggest you contact us for further advice on whether it is in your interests to voluntarily take part.

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