5 Things You Should Never Say to HMRC

Five Things to Avoid Saying to HMRC

The presenter’s core message is that business owners should be truthful and cooperative, but careful and precise when responding to HMRC. Answer what was asked, keep communications factual, maintain evidence, and address issues early. The advice is not to conceal information.

Practical Playbook

• Don’t over-explain. Unprompted details can broaden an inquiry or raise questions HMRC was not investigating. Respond to the specific request and, where practical, keep communication in writing to reduce the risk of an emotional or overly expansive conversation.
• Don’t say you have no records. Keep receipts, invoices, bank statements, mileage records, and other evidence that supports your tax figures. If HMRC requests documents, clarify exactly what is needed and give a realistic timeframe. The presenter suggests wording such as: “I’ll gather the records and provide them within 7 to 14 days. Can I confirm exactly what you need?”
• Don’t rely on “I didn’t know” as a defence. Instead, say that you want to correct the issue and ask what needs updating. Track income and tax obligations regularly, and seek clarification or advice early.
• Don’t assume HMRC guidance or an accountant fully protects you. Guidance may be general, and the taxpayer remains responsible for what is submitted. Check that advice applies to your specific circumstances, keep a record of decisions, and seek tailored advice where needed.
• Don’t ignore a tax bill or deadline. Contact HMRC early if you cannot pay and ask about a Time to Pay arrangement. An accountant may also help negotiate. Delays can turn a tax issue into a cash-flow problem and lead to enforcement action.

Examples and Operational Recommendations

• “Jeff,” a roofer: HMRC initially asked for a mileage calculation for one tax return before releasing a CIS rebate. During a phone call, Jeff challenged the request and volunteered that he used estimates and that others on the site did the same. The presenter says HMRC then reviewed his previous four years, and two colleagues received letters three months later. The lesson is to respond to the request rather than volunteer unrelated information.
• Recordkeeping in practice: Jeff kept receipts in his van. The presenter’s firm helped him switch to photographing receipts on his phone and sending them in, as a simple way to make records easier to retain and provide.
• In one case, the presenter says unsupported costs led HMRC to treat incoming amounts as profit, nearly doubling the tax bill.
• A company director’s reliance on HMRC guidance about dividends reportedly did not account for other income or benefits. In a contrasting example, getting the situation checked reportedly saved a few thousand pounds.

Metrics and Figures Cited

• Penalties can be up to 30% for careless behaviour, 70% for deliberate behaviour, and 100% for deliberate concealment.
• The video cites HMRC interest of 7.75% per year, compounded daily, at the time of filming.
• Suggested timeframe for gathering requested records: 7–14 days.
• In the roofer example, the review expanded from one tax return to four previous years; two colleagues received letters three months later. The presenter also says Jeff usually received rebates within six weeks.
• The presenter cites a separate case in which HMRC directly recovered £235,000.

These figures and examples are presented by the speaker. Viewers should verify current rules and rates for their own circumstances.

Presenter/source: Michelle Eames, Helpbox UK.