Date posted: 23rd Jul 2024
We are aware that HMRC is sending more letters to taxpayers to “nudge” them to check their tax returns are in order and to encourage the taxpayer to ensure that they are being compliant with their tax affairs.
The letters can cover a wide range of topics from rental income, bank interest and capital gains to dividend income from their own company.
You should remember that a nudge letter is not an allegation that something is wrong. HMRC has been wrong many times, but it may just be worth checking that nothing has been missed off your tax return (perhaps a new source of income or a capital gain) just in case HMRC is aware of a source of income that has not been declared.
Nudge letters are becoming a more sophisticated tool in the HMRC arsenal as they can save a lot of time and resource by asking the taxpayer to check their own tax return and come forward with any discrepancies, which ultimately saves HMRC time and money.
If you are concerned that you have missed something off your tax return, it is advisable to come forward and make a disclosure to HMRC, as this will help lower the penalties that HMRC can charge.
If you receive a nudge letter and are unsure how to respond to HMRC, please do contact us, as we are well versed in dealing with HMRC enquiries.
