SolvedCH251000 | How to do a compliance check: using FA08/Sch36 inspection powers: the inspection powers
From HM Revenue & Customs · Compliance Handbook
There are four different inspection powers in Sch36, FA08 - see CH25100.
The power you use will depend upon the purpose of the visit and what you are inspecting. The inspection powers are in:
Paragraph 10
This is the most widely used inspection power which allows officers of HMRC to enter and inspect a person’s business premises for the purpose of checking their tax position, see CH21540.
You may inspect:
This power can only be used to inspect business premises. Inspection of parts of premises that are used solely as a dwelling is not allowed, although parts of a person’s home will be business premises when they are used in connection with the carrying on of a business, see CH25220.
Paragraph 10A
This power allows officers of HMRC to enter and inspect the business premises of an involved third party, see CH25360 and CH25100.
Paragraph 11
This power allows HMRC officers to enter and inspect premises, goods and related documents where the officer has reason to believe that:
the premises are used in connection with the supply of goods under taxable supplies and goods to be so supplied or documents relating to such goods are on those premises
the premises are used in connection with the acquisition of goods from other EU member States under taxable acquisitions and goods to be so acquired or documents related to such goods are on the premises
the premises are used as or in connection with a fiscal warehouse
The officer may enter the premises and inspect:
the premises
any goods on the premises, and
any documents on the premises that appear to relate to the supply of goods under taxable supplies, the acquisition of goods from other member states under taxable acquisitions or fiscal warehousing
This type of inspection does not have to be for the purpose of checking the tax position of the person whose premises they are.
Paragraph 12A