HMRC updates guidance on information notices

Information notices, issued under Schedule 36 Finance Act 2008, allow HMRC to require taxpayers to provide information or documents needed to check a tax position. The updated guidance reinforces that HMRC should first seek information directly from the taxpayer before considering third-party notices. The revised wording also highlights that requests must be proportionate and clearly targeted. HMRC officers are reminded to specify reasonable timeframes for responses and to avoid making overly broad or unclear requests. In addition, the guidance notes that partial compliance should be considered before further information is sought.

While these points reflect existing legal principles, their inclusion in updated guidance signals a renewed focus on how information powers are exercised in practice. For business owners, this provides some reassurance that requests should be justified and limited to what is reasonably required. However, once a formal information notice is issued, it carries legal force. Failure to comply can result in penalties, and there are only limited grounds on which a notice can be challenged. If you receive a request from HMRC, you should check whether it is informal or a formal notice and review the scope carefully. The updated guidance underlines that requests should be proportionate, but it remains important to respond promptly and seek advice where necessary.