Marketing companies know that personal letters sent directly to customers are more powerful than broadcast or printed adverts. HMRC is using this technique to recover unpaid tax.

HMRC matches data from a wide range of sources to tax returns and will write to individual taxpayers where an anomaly is found. These 'nudge letters' cover a wide range of topics from holiday lettings to online sales. Companies may also receive nudge letters about R&D claims or taxes due on residential property.

The letter will often enclose a certificate of tax position to complete and return but there are good reasons why you should not do this.

If you receive a nudge letter from HMRC which says that you may have additional tax to pay, please contact us without delay.

Where there is additional income to declare we can help you calculate what tax is due and draft a full disclosure including figures for interest and penalties. In any event you should respond to HMRC within 30 days with an indication of whether a disclosure will be required.

Last updated: March 3rd 2023.