What is a closure notice from HMRC?

A closure notice is the formal letter that officially ends an HMRC enquiry into your tax return or company accounts.

It either confirms no change is needed, or it sets out HMRC's final view of any adjustment, including extra tax, interest and any penalty being proposed.

Once you receive it, the enquiry itself is over, though you still have the right to challenge any figures you disagree with.

Closure notices are governed by section 28A of the [Taxes Management Act 1970](https://www.legislation.gov.uk/ukpga/1970/9/section/28A) for Self Assessment enquiries, with a parallel provision under the Finance Act 1998 for company tax return enquiries.

The notice must state the enquiry's conclusion and make any amendment to the return HMRC considers necessary. Without a closure notice, an enquiry technically remains open indefinitely.

You have a statutory right to appeal against any amendment within the notice, typically within 30 days, either by asking for an internal HMRC review or going straight to the tribunal.

For a company enquiry, the closure notice will confirm any change to corporation tax due, which may also affect related personal tax positions, such as dividends or director's loan account charges.

If HMRC proposes an adjustment you don't accept, act within the appeal window. Once it passes, challenging the figure becomes much harder.

A closure notice can sometimes be issued for part of an enquiry while other aspects continue, known as a partial closure notice, so read the document carefully to see exactly what it covers.

If the closure notice confirms extra tax is due, you'll also usually face interest from the original due date, and potentially penalties depending on how any error arose.

Appealing an unfavourable closure notice has its own costs in time and professional fees, though it can be worthwhile if HMRC's figures are genuinely wrong.

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Don't assume a closure notice is the final word if you disagree with it. The 30-day appeal window is your opportunity to challenge the figures.

Don't miss the difference between a full and partial closure notice, since a partial notice leaves other issues still under enquiry.

Don't delay seeking advice once a closure notice arrives, particularly where penalties are proposed, as the appeal deadline moves quickly.