Can HMRC look at my bank account?

HMRC can look at your bank account, but only through a formal process. It cannot simply browse your banking online or ring your bank for a casual chat.

It must use a Schedule 36 information notice, either addressed to you directly or as a third party notice sent to the bank itself. The notice has to be specific about what records are wanted and why they matter to a tax check.

For a director, this usually surfaces during a self assessment or corporation tax enquiry once HMRC suspects income or expenses have not been fully declared.

Schedule 36 Finance Act 2008 gives HMRC power to require 'reasonably required' information and documents from a taxpayer or a third party. Bank statements fall within that power when they help check a tax position.

Third party notices, including those sent to banks, generally need one of three things: your agreement, approval from the First-tier Tribunal, or sign-off from an authorised HMRC officer alongside a summary given to you in advance. This layer of oversight exists precisely because bank data is sensitive.

HMRC does not need your consent for every notice, but it cannot bypass the approval requirement altogether. If the safeguard was skipped, the notice may be invalid.

Directors often mix personal and business banking loosely, especially in the early years of a company. That habit makes personal accounts more likely to be requested if HMRC is checking dividends, director's loans, or undeclared income.

If HMRC asks for personal statements, check exactly what period and accounts the notice covers. A notice that is too broad, or that lacks a clear tax reason, can sometimes be challenged before you hand anything over.

Do not send bank statements informally by email in response to a phone call. Insist on a written notice, then respond within the stated timeframe so you avoid a separate penalty for non-compliance.

Handling a Schedule 36 notice properly takes time: gathering records, checking scope, and sometimes negotiating with HMRC over what is genuinely required. Getting it wrong can extend an enquiry and increase professional fees.

Growth plan clients get tax investigation insurance included as standard, which covers professional costs if HMRC opens an enquiry. See /fees for how the plans compare.

Don't ignore a Schedule 36 notice because you think it's unreasonable; ignoring it risks penalties even if you later win an appeal.

Don't hand over more than the notice actually asks for. Oversharing can open new lines of enquiry you didn't need to invite.

Don't assume every request is enforceable without checking the approval route was followed correctly.