HMRC have published Guidelines for Compliance 13. This guidance covers steps to be taken in assessing both fact and law in arriving at a filing position and is relevant to all taxes. HMRC’s commentary is grounded in the self-assessment regime, and in particular the requirement to provide a declaration that the information provided to HMRC is correct and complete to the best of the taxpayer’s knowledge.
The guidance is clearly a continuation of HMRC’s efforts to change perceived behaviours in the tax market. It is intended to address HMRC’s concern that in some cases taxpayers do not undertake sufficient checks before making a declaration of this kind. HMRC are also concerned about situations in which taxpayers adopt a ‘novel view’ of the law without being satisfied that it is correct, or where an ‘improbable interpretation’ of the law is applied by a taxpayer.