What is a Schedule 36 information notice?

A Schedule 36 information notice is HMRC's formal power to require documents or information from a taxpayer, or from a third party, in order to check a tax position. It's named after Schedule 36 of the Finance Act 2008, which sets out exactly when and how HMRC can use this power.

The notice must specify what's being asked for and give a reasonable period to comply, typically at least thirty days, though the exact period is set out in the notice itself. It can be used across most taxes, including Income Tax, Corporation Tax, VAT and PAYE.

Unlike an informal request, a Schedule 36 notice carries legal weight. Ignoring it, or failing to comply properly, can lead to financial penalties, separate from any tax that might ultimately be found due.

The core test is whether the information or documents are 'reasonably required' for checking your tax position. This is a real limit, not just a formality: a notice that asks for something unconnected to any tax risk, or that's excessively broad, can potentially be challenged.

Schedule 36 also protects certain categories of information. For example, there are restrictions around personal records unrelated to tax, and specific protections for certain professional communications with a lawyer. HMRC cannot use a Schedule 36 notice as an unlimited fishing expedition into every aspect of your life.

Third party notices, sent to your bank or another organisation rather than to you directly, usually need extra safeguards: either your agreement, tribunal approval, or sign-off from an authorised HMRC officer along with advance notice to you, except in narrow circumstances.

Some, but not all, Schedule 36 notices carry a right of appeal to the First-tier Tribunal, generally within thirty days of the notice. Notices approved in advance by the tribunal typically cannot be appealed again, since the tribunal has already considered the request.

If you believe a notice asks for something not reasonably required, or that a document doesn't exist, or is out of your possession or power, these are all valid points to raise, either informally with the caseworker or formally through an appeal, depending on the type of notice.

Appealing doesn't necessarily pause the clock on compliance in every case, so get advice quickly if you're considering this route, rather than simply not responding while you decide.

Failure to comply with a Schedule 36 notice can result in an initial penalty, followed by daily penalties if the failure continues, and potentially a further penalty for continued failure after that. These penalties apply regardless of whether any additional tax is ultimately found to be due.

If you have a reasonable excuse for not complying, for example a document was genuinely destroyed in circumstances beyond your control, this can be relevant to whether a penalty applies, but it needs to be raised with HMRC clearly and supported where possible.

Schedule 36 notices commonly arise during Corporation Tax or VAT compliance checks, asking for invoices, bank statements, or explanations of specific transactions. Keep your records organised and accessible so you can respond within the deadline without a scramble.

If a notice seems disproportionate to the enquiry, for example asking for years of records when only one transaction is in question, it's worth querying the scope with the caseworker or getting an accountant to review it before you comply in full.

Complying properly with a Schedule 36 notice takes time to locate and organise the right records, and getting it wrong risks separate penalties on top of any tax adjustment. Professional help reviewing the notice's scope can prevent both problems.

Growth plan clients get tax investigation insurance as standard, which covers professional costs of dealing with information notices during a compliance check. See /fees.

Don't ignore a Schedule 36 notice, even if you think the request is unreasonable; address it formally instead.

Don't provide documents beyond what's actually listed in the notice.

Don't miss the appeal window if you intend to challenge the notice; thirty days passes quickly.