FHDDS32400 | Approval, revoking the approval and variations: approval – Rejecting an application: minded to reject

Businesses could face serious financial loss when HMRC take a decision to reject an application. For existing businesses that have been trading prior to the implementation of FHDDS, the business impact of rejecting their approval would be significant.

You should issue a ‘Minded to reject’ letter prior to issuing a formal decision – see FHDDS34000.

The ‘Minded to reject’ procedure will allow HMRC to tease out any contentious issues before issuing a formal decision – with the aim of establishing any irregularities. If the business does respond with reasons you should consider whether there is any new evidence that needs to be taken into account which would alter your original decision. You should decide whether to accept or reject approval. All your decision making processes should be fully documented as they will be disclosable.

If you decide that rejection is appropriate, you should follow the procedure at FHDDS31605.

Letter templates can be found on SEES / Forms + Letters / Selected Categories / Local Compliance / +CITEX / Fulfilment House Due Diligence Scheme.