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HMRC’s Individuals and Small Business Compliance (ISBC) team has launched a new ‘nudge’ letter campaign aimed at taxpayers who may have undeclared property income or gains. These letters are sent to individuals where HMRC has data suggesting a potential tax liability related to similar issues.
The letter urges recipients with undeclared income to take action within 30 days, either by using HMRC’s online disclosure service or calling HMRC directly. Any disclosure made in response to this letter will be treated as prompted, which could influence the penalties HMRC may impose. Taxpayers with no undeclared income are also required to confirm this to HMRC within the same timeframe. Failure to respond could lead to the initiation of a compliance check or enquiry by HMRC.
Taxpayers receiving these letters should carefully review their tax position before responding and may benefit from seeking professional advice. If undeclared income or gains are identified, it’s important to consider the most appropriate method for making a disclosure to HMRC.
If you’ve received a nudge letter or are concerned about undeclared property income, contact our team of experts today for confidential advice and support. We can guide you through the disclosure process and help you regularise your affairs efficiently.