Some enquiries drift. Months become years, information requests trickle in, and nothing seems to move. Meanwhile the taxpayer pays for accountants, lawyers and lost management time, with no certainty at the end of it.
For enquiries under the Self Assessment regime there is a remedy. The taxpayer can apply to the tax tribunal for a direction requiring HMRC to issue a closure notice within a set period. The starting point favours the taxpayer: the tribunal will usually grant the direction unless HMRC shows it has reasonable grounds for keeping the enquiry open.
That is not a blank cheque. HMRC is entitled to understand the facts before reaching a view, and the tribunal will not force a premature conclusion where the taxpayer has held back documents. Complex affairs may justify longer enquiries. The question is one of reasonableness, judged on the particular facts, with no rigid formula.
Successful applications tend to share certain features. The taxpayer has cooperated promptly and fully. HMRC already holds enough to make an informed judgment. The enquiry has become disproportionate to whatever remains outstanding. And the period requested for closure is realistic.
Timing is strategic. Apply too early and you may simply hand HMRC a reason to demand more material. Wait too long and the costs keep mounting.
One caution. For some HMRC interventions there is no equivalent statutory route, but there may be alternative options to achieve resolution.