Read the original guidance here:
HMRC SDLT: Guidelines for Handling Mis-directed Responses to Information Requests in Compliance Cases

Understanding Mis-directed Responses in Tax Enquiries

This article explains how to handle mis-directed responses to enquiries about Stamp Duty Land Tax (SDLT) related to sections FA03/SCH10/PARA12 and FA03/SCH10/PARA14. These sections deal with certain information requests and outline how to ensure clear communication during these processes.

What is an Enquiry?

An enquiry is started by a compliance caseworker who investigates tax matters. Each enquiry is assigned a unique reference number that helps in tracking and managing the case.

Importance of Unique Reference Numbers

• The unique reference number is essential for identifying the case in question.
• This number, along with the case reference number and the initials of the compliance caseworker, should be included in all related correspondence.

For instance, if a property buyer or their representative sends a message about an enquiry, it should include the unique reference number. This way, the caseworker can easily find and review the relevant information.

What if the Unique Reference Number is Missing or Incorrect?

If the unique reference number is not provided or is incorrect, it is important to locate the appropriate record in the system. Here are the steps to follow:

• First, try to trace the correct record using the details you have available.
• If a match is not found, you should reach out to the buyer or their representative.

When contacting them, ask for additional details that can help in identifying the case more accurately. This could include:

• Copies of any previous correspondence regarding the case.
• Additional identifying information, such as the property address or transaction dates.

Responding to Mis-directed Enquiries

Mis-directed responses can complicate the enquiry process. If you receive a response that does not follow the proper channels, it is vital to handle the situation correctly.

Steps to Take When Handling Mis-directed Responses

• Assess the response to determine if it contains any relevant information.
• If the response lacks the unique reference number, inform the sender that you require this number to proceed.
• Forward any relevant information to the appropriate caseworker, ensuring that they also receive the context of the enquiry.

Maintaining Clear Communication

Clear communication is essential for the smooth progression of SDLT enquiries. Both the property purchaser and their agent should be kept informed about the status of the enquiry and any next steps required from them. Consider the following:

• Regular updates should be provided to all parties involved, particularly after receiving or sending significant information.
• If issues arise, promptly clarify these with the involved parties to prevent misunderstandings.

Best Practices for Record Keeping

Proper record keeping is vital to the success of any enquiry. Here are some recommended best practices:

• Always document the unique reference number and relevant case details in a consistent way.
• Maintain a record of all correspondence exchanged throughout the enquiry process.
• Use a secure system that allows quick access to records associated with any particular case.

By following these best practices, you can avoid potential confusion that may arise from mis-directed responses or lost information.

When to Escalate an Issue

Sometimes, the situation may require further action. Knowing when to escalate an issue can save time and effort:

• If repeated efforts to communicate with the property purchaser or their agent yield no results, consider escalating the matter.
• If legal complexities arise during the process, involve a higher authority or legal officer for assistance.

Keeping a record of all attempts to correspond or resolve issues is crucial if escalation is needed.

Conclusion

Adhering to the processes outlined in this guide will help streamline SDLT enquiries and maintain clear communication throughout. By following the outlined steps and maintaining good records, compliance caseworkers can effectively handle any mis-directed responses and ensure that enquiries reach a satisfactory conclusion.