CC/FS3 is the HMRC factsheet called “Compliance checks: visits by agreement or advance notice”. HMRC must send it when it writes to tell you it intends to visit your business premises as part of a compliance check. It explains how the visit is arranged, usually with at least 7 days’ notice, what officers may look at, your rights, and the penalties of £300 plus up to £60 a day if you keep refusing an inspection that a tribunal has approved.
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What is CC/FS3 and why has HMRC sent it to me?
CC/FS3 is one of the HMRC compliance check factsheets, the short explanatory documents HMRC sends at set points in a check. Its full GOV.UK title is “Compliance checks: visits by agreement or advance notice”. It was first published on 1 April 2009 and last updated on 1 April 2022, when HMRC revised the section on getting help and added sections on complaints and privacy.
HMRC’s Compliance Handbook tells officers that they must issue a copy of CC/FS3 when they write to tell a person they intend to visit. So if this factsheet arrived with a letter, an officer is planning to come to your business premises rather than check everything by post. The factsheet says HMRC visits only when it considers a visit necessary, to review records or business assets and to understand how the business works.
CC/FS3 is not used for unannounced visits, which are covered by CC/FS4 and CC/FS5, or for excise visits under the Customs and Excise Management Act 1979, which use CC/FS16. For the wider process, see what happens in an HMRC compliance check.
How does HMRC arrange a visit by agreement or advance notice?
The factsheet says visits are normally arranged by agreement. An officer will contact you by phone or letter, explain why they want to visit, and usually give you at least 7 days’ notice. If you think a visit is not appropriate, you can say so, and HMRC may be able to get what it needs another way.
If you do not agree, HMRC may still carry out an inspection, normally after giving advance notice and issuing a notice of inspection. The factsheet describes this as a legal document that allows HMRC to inspect business premises, assets and statutory records. The law behind it is Schedule 36 to the Finance Act 2008. Paragraph 12 says an inspection may take place at a time agreed with the occupier, or at any reasonable time if the occupier has had at least 7 days’ notice or the inspection is carried out by, or with the agreement of, an authorised officer.
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What can HMRC officers look at during the visit?
Under paragraph 10 of Schedule 36, an officer may enter your business premises and inspect the premises, business assets on them and business documents on them, if the inspection is reasonably required to check your tax position. The power does not extend to any part of the premises used solely as a dwelling. The separate guide to HMRC inspection of business premises covers the power in more depth.
CC/FS3 also tells you what to expect on the day:
- You do not have to be there, but it helps. Someone else can let the officers in.
- A visit can last from a few hours to a few days, depending on the size of the business and the issues.
- HMRC does not usually need to speak to your staff, but may speak to people who keep the records or whose employment status is being checked. You can ask HMRC not to contact staff about the visit.
- Officers may take records back to their office. They will give you a receipt, keep the records secure and return them as soon as they can, and will provide copies if you need the originals sooner.
- If business assets are kept somewhere else, a further visit may be needed.
What if I run my business from home?
The factsheet says HMRC normally visits a home only if a business is run from it or business stock or assets are kept there. Officers can enter only the parts used for the business, unless you invite them into other areas or they are carrying out a valuation.
For checks of Income Tax or Corporation Tax, and of Stamp Duty Land Tax, Stamp Duty Reserve Tax, Inheritance Tax and certain Capital Gains Tax liabilities, HMRC may need to value private premises or property inside them. That is the only situation the factsheet gives for officers going beyond the business areas without your invitation.
What happens if I refuse or do not comply with a notice of inspection?
If you refuse an inspection under a notice of inspection, HMRC may ask an independent tribunal to approve it. If the tribunal approves the inspection and you still refuse, CC/FS3 says you will be charged a penalty of £300, and you may be charged further penalties of up to £60 a day until you allow access. These amounts come from paragraphs 39 and 40 of Schedule 36, which apply to deliberately obstructing an officer during an inspection approved by the tribunal.
No penalty is due if you have a reasonable excuse. The factsheet describes this as something that stopped you meeting an obligation on time despite taking reasonable care, and gives examples such as serious illness, the death of someone close to you, or documents lost in a fire or flood. Once the excuse ends, you must put things right without unnecessary delay.
What does CC/FS3 say about privacy and documents?
The factsheet reminds you that Article 8 of the Human Rights Act protects your private and family life, home and correspondence. HMRC may still inspect in a way that is reasonable and proportionate. If you think an inspection is not, tell the officer and explain why.
It also warns about documents. HMRC may issue a Schedule 36 information notice asking for information or documents. A penalty may apply if you, or someone acting for you, conceals, destroys or disposes of a document HMRC has asked for in a notice or said it intends to ask for. Doing this with a document covered by a tribunal approved information notice is a criminal offence, and HMRC may investigate with a view to prosecution.
Who can deal with HMRC for me, and what should I do now?
CC/FS3 says you can appoint someone else, such as an adviser, friend or relative, to deal with HMRC. HMRC may still write to you or speak to you directly and will copy its letters to your representative. Many people ask their accountant or tax adviser to agree the date, attend the visit and handle follow up questions; see representing a client in a compliance check. The accountant’s fees for dealing with an HMRC check can be insured through tax investigation insurance.
Common mistakes are ignoring the letter, refusing the visit without giving a reason, letting officers see records that are disorganised or incomplete, and forgetting to tell HMRC about health or personal circumstances that make a visit hard. The factsheet asks you to tell the officer about these so HMRC can help. If you are unhappy with the service, raise it first with the person or office you have been dealing with, who will explain how to make a formal complaint.
| Point | What CC/FS3 and the law say |
|---|---|
| Full title | Compliance checks: visits by agreement or advance notice |
| When HMRC sends it | When an officer writes to say they intend to visit |
| Usual notice | At least 7 days |
| What can be inspected | Business premises, business assets and business documents |
| Parts of a home | Only business areas, unless you invite officers in or a valuation is needed |
| Refusing a tribunal approved inspection | £300 penalty, then up to £60 a day |
| Defence | Reasonable excuse |
| Last updated | 1 April 2022 |
Illustration only. Priya runs a cafe and lives in the flat above it. She receives a letter proposing a visit in 10 days, with CC/FS3 enclosed. She asks her accountant to deal with it, and the accountant asks HMRC to move the date by a week because Priya will be away. HMRC agrees. On the day the officer looks at the till records and stock room, takes two folders of invoices away with a receipt and stays out of the flat. No notice of inspection or penalty is involved because the visit was agreed.
Frequently asked questions
Can I say no to an HMRC visit?
You can tell HMRC you think a visit is not appropriate, and it may get the information another way. If HMRC still needs to inspect, it can issue a notice of inspection and, if you refuse, ask a tribunal to approve the inspection, after which penalties can apply.
Do I have to be there when HMRC visits?
No. CC/FS3 says you do not have to be present, although it helps, and someone else can give the officers access.
Can HMRC officers look round my house?
Only the parts used for the business, unless you invite them further or they are valuing property for one of the taxes the factsheet lists. Parts used solely as a dwelling are outside the inspection power.
Is CC/FS3 the same as CC/FS4?
No. CC/FS3 covers visits agreed with you or made after advance notice. CC/FS4 covers unannounced visits, where officers arrive without warning with a notice of inspection.
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.
Sources
- GOV.UK: Hm revenue and customs compliance checks factsheets
- GOV.UK: Compliance checks visits by agreement or advance notice ccfs3
- GOV.UK: manual page CH202050
- GOV.UK: Visits by agreement or advance notice ccfs3
- legislation.gov.uk: Act 2008 c. 9, schedule 36
- legislation.gov.uk: Act 2008 c. 9, schedule 36
- legislation.gov.uk: Act 2008 c. 9, schedule 36
- legislation.gov.uk: Act 2008 c. 9, schedule 36
Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 November 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.