Issue of reference number by HMRC

It is important to understand that the issuing of a reference number is not approval by HMRC of the scheme: it is simply a record of the fact that the scheme has been disclosed. The normal process of enquiry into tax returns is unaffected. Although HMRC has 90 days in which to issue a reference number, practice in the vast majority of cases has been to be that a reference number is issued immediately on receipt. In the early stages of the regime HMRC appeared to be operating a `process now – enquire later’ approach to disclosures. The legislative basis for this approach was far from clear when DOTAS was first introduced but has since been put on a firmer legal footing. One of the reasons for the extension to 90 days was for HMRC to be able to review disclosures in more detail, and in suitable cases discuss them with scheme promoters, before deciding whether or not to issue a reference number. This was so that marginal cases where a promoter had made a disclosure where there was genuine doubt over whether the arrangement should be disclosed could be discussed and if necessary agreement reached that no disclosure was necessary. This practice change is a consequence of the increased importance of the existence of a DOTAS reference number in the context of the Accelerated Payment Notice regime,