In HMRC v A taxpayer (ex parte) [2018] TC06710 the First Tier Tribunal (FTT) did not approve a third party notice under schedule 36; the recipient was the taxpayers’ auditor who also prepared their corporation tax returns and the protection for audit papers applied.

  • Paragraph 24 of Schedule 36 protects papers from being the subject of a Third party notice  where they are held/were created as part of the audit process.
  • HMRC requested information saying it provided context to entries in the Taxpayers’ qualified audited accounts, to help check the corporation tax position. The auditors also prepared and submitted the corporation tax returns.
  • The FTT disagreed; HMRC were requesting documents and information relating to the statutory audit and not held by the Auditor in its capacity as tax accountant. If the Taxpayers did not use their auditor to prepare their corporation tax returns, HMRC would not be able to obtain the documents as paragraph 24 would apply. There was no reason why HMRC should be entitled to disclosure just because the Auditor also acted as the corporation tax agent.

There is no right of appeal against this decision other than an application for Judicial review.


Schedule 36 information notices

Schedule 36 third party notices 

Schedule 36 notice: no further appeal 

External link:

HMRC v A taxpayer (ex parte) [2018] TC06710