SM03100 | Special Measures: Behaviours: Persistently engaging in un-cooperative behaviour

Special Measures is reserved for large businesses that consistently hinder HMRC over time, not for isolated incidents.

Behaviours may include:

• omitting key information

• providing inaccurate or incomplete documents

• requiring HMRC to use formal powers to obtain accurate data and information

The behaviours do not need to be a recurrence of the same, specific behaviour. The key point is that the behaviours exhibited are persistent and unco-operative, leading to a delay in HMRC exercising its functions.

Special Measures decisions are made case by case, with each business evaluated according to its particular circumstances.

Example – Large business persistently engaging in unco-operative behaviour

HMRC opens an enquiry in January 2018 and issues a Schedule 36 information notice with a deadline of April 2018. The business seeks repeated extensions, ultimately delaying until December 2018, and then provides only partial and inaccurate data. Further delays and errors continue into March 2019, without the business providing explanation for the failure to comply with the information notice. HMRC concludes there is a clear pattern of behaviour that is impacting its ability to perform its function.

FA2016/SCH19/PT3/PARA35(a)