HMRC have published a briefing paper on the single compliance process (SCP) which is currently being developed and trialed.

The SCP will be a single framework within which HMRC envisages that the majority of future SME business enquiry work will be undertaken. The SCP approach uses five process stages common to most enquiries. Using this design framework HMRC propose four different approaches, with varying amounts of time spent on each case, which HMRC refer to as intensity levels.

The SCP will cater for both single tax and cross-tax enquiries. HMRC are keen to stress however that they will always act within the legal boundaries for cases that begin as single tax enquiries but in which cross-tax risks become apparent during the enquiry (and vice versa).

As it is intended that the SCP will allow for the enquiry to be driven by the risks or behaviours identified, the four different levels of intensity which will be used will be proportionate to the risks identified. These are as follows:-

1. The first level will be to carry out an enquiry where there is no need for a face to face meeting, for example by correspondence, and with minimum inconvenience.
2. The second level will adopt a simplified and faster route for those cases where a lower intensity face to face intervention approach is required.
3. The third level will address cases requiring a greater amount of time because the depth and breadth of the enquiry is more involved.
4. The fourth level will tackle the most demanding cases such as those indicating tax evasion characteristics or those highly complex in nature.

All levels can apply to all taxes and types of cases and can be moved between levels.

The briefing paper can be accessed at http://www.hmrc.gov.uk/news/scp-trial.pdf