Asking the tribunal to make HMRC close an enquiry

Q: What mistakes should you avoid?

Applying too early. An application soon after the opening letter rarely succeeds. Using it instead of an appeal. Challenge an information notice or jeopardy amendment through its own appeal route. Ignoring cheaper options. HMRC's guidance repeatedly suggests alternative dispute resolution before a hearing. Forgetting the outcome. A direction forces a decision, not a favourable one; HMRC can still amend the return on the evidence it has. If HMRC opens a check into your return, tax investigation insurance pays your accountant's fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.

If an HMRC enquiry has gone on too long, the taxpayer can apply to the First tier Tribunal for a direction that HMRC issue a partial or final closure notice within a set period. The tribunal must give the direction unless HMRC satisfies it that there are reasonable grounds for not closing the enquiry within a specified period, so the burden is on HMRC. If the direction is given, the tribunal sets a deadline; it does not decide the tax, and HMRC must close on the evidence it already has.

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Where does the right come from?

The power appears in several places, depending on what is under enquiry:

Enquiry into	Provision
Personal or trustee return	Section 28A(4) to (6) Taxes Management Act 1970 (TMA 1970)
Partnership return	Section 28B(5) TMA 1970
Company tax return	Paragraph 33 of Schedule 18 to the Finance Act 1998
Claim made outside a return	Paragraph 7(5) to (7) of Schedule 1A TMA 1970

Section 28A(4) lets the taxpayer apply for a direction requiring HMRC to issue a partial or final closure notice within a specified period. Section 28A(6) says the tribunal shall give the direction unless satisfied there are reasonable grounds for not issuing the notice within a specified period. Paragraph 33(3) of Schedule 18 frames the company test as whether HMRC has reasonable grounds. For standalone claims, see HMRC enquiries into claims made outside a return.

When can you apply, and how often?

HMRC’s Enquiry Manual at EM1976 says an application can be made at any time during the enquiry, and EM1977 says there is no limit on the number of applications. You can ask for a final closure notice or a partial closure notice on a particular issue. EM1981 confirms there is no appeal against a notice of enquiry itself, but you can ask the tribunal to direct closure at any time after it is issued.

There is one block. While a joint referral under section 28ZA is in progress, section 28ZD(1) prevents any application for a direction to close the referred question or the whole enquiry; see referring an enquiry question to the tax tribunal.

EM1978 says that if you apply again straight after the tribunal has rejected an application, HMRC will explain the circumstances and leave the tribunal to decide whether to hear it again.

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How do you apply?

The application goes straight to the tribunal, not to HMRC (EM1977). GOV.UK says the online tax tribunal service can be used to apply to close an enquiry, or you can download and complete application form T245 and post it to the tribunal. The tribunal notifies HMRC, and ARTG7550 says closure applications are usually categorised as Basic cases, although HMRC may ask for more time if counsel, witnesses or complexity are involved.

Section 28A(5) applies the appeal provisions of Part 5 TMA 1970 to the application with necessary modifications, and EM1976 says it is heard and determined in the same way as an appeal. Practical guidance on hearings is in representing yourself at the tax tribunal.

Your application should set out a short chronology: when the enquiry opened, what HMRC asked for, what you supplied and when, and what has happened since. Tribunals respond to specific evidence of delay or of information already provided.

What does HMRC have to show?

EM1976 tells officers that the legislation puts the onus on HMRC to show why the enquiry should continue. HMRC will also stress that its right to open an enquiry does not depend on being dissatisfied with the return.

HMRC’s guidance suggests how it will defend different applications:

At the start of an enquiry. EM1981 says an application made on receipt of the opening letter is in effect a challenge to the right to enquire, and that HMRC should not normally have difficulty resisting it.
After a formal notice. Where the application follows an information notice, a penalty, a jeopardy amendment or a discovery assessment, EM1982 says HMRC will point you to your appeal rights against that notice instead.
After HMRC delay. EM1984 accepts that if you have produced everything requested and HMRC has not responded within a reasonable time, the tribunal is more likely to direct closure, particularly if HMRC cannot examine the information before the hearing.
Where HMRC needs more. EM1985 says HMRC should explain at the hearing what further information it needs and why.

What does the tribunal order?

EM1990 describes the limits of the tribunal’s role. It does not accept the return as filed, suggest amendments, comment on whether the return is complete, or quantify any figure. If it considers it appropriate, it directs HMRC to complete the enquiry by a specified date. On an application for a final closure notice, it may instead direct a partial closure notice.

After a direction, EM1990 tells officers to ask for at least 30 days, or a reasonable time, to consider the information they hold, and then to issue the closure notice. HMRC must base its conclusions on the evidence it already has, including third party information, and cannot require you to produce anything further. If HMRC has nothing to suggest the return is wrong, it may have to close in the amount of your self assessment. Once the notice is issued, any penalty proceedings should start straight away, and HMRC cannot make further enquiries into the return or the issue covered.

EM1991 adds that a direction for one year does not extend to other years, although HMRC can continue enquiries it has already extended to earlier years.

Can either side appeal the tribunal’s decision?

EM1990 says HMRC can seek permission to appeal a direction to the Upper Tribunal on a point of law, and in that case will apply to suspend the direction rather than issue the closure notice. It also says a taxpayer can appeal on a point of law against a refusal, but HMRC will continue the enquiry while that appeal is pending. Note that HMRC’s appeals guidance at ARTG7510 lists closure applications among tribunal decisions with no right of appeal, so its guidance is not consistent on this point; take advice before relying on an onward appeal.

A worked example

Illustration only. HMRC opened an enquiry into Lee’s return in February 2025. He supplied all the records requested by May 2025. By March 2026 HMRC had sent no substantive reply and ignored two chasers. Lee applies using form T245, attaching the correspondence. HMRC cannot identify any further information it needs, so the tribunal directs a final closure notice within 30 days. HMRC issues a notice making a small amendment based on the records it holds. Lee then has 30 days to appeal the closure notice in the normal way; see HMRC closure notices.

What mistakes should you avoid?

Applying too early. An application soon after the opening letter rarely succeeds.
Using it instead of an appeal. Challenge an information notice or jeopardy amendment through its own appeal route.
Ignoring cheaper options. HMRC’s guidance repeatedly suggests alternative dispute resolution before a hearing.
Forgetting the outcome. A direction forces a decision, not a favourable one; HMRC can still amend the return on the evidence it has.

If HMRC opens a check into your return, tax investigation insurance pays your accountant’s fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.

Related Accountapedia entries

Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 24 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.