A One to Many approach is where HMRC sends one standard message to many customers. The aim is to influence customers’ behaviour, so they are more likely to comply with their tax obligations. A One to Many approach is not a compliance check, but a nudge letter should never be ignored !
If there is a problem, the onus is on the taxpayer to make the required tax return amendments or, where necessary, make a disclosure. If you have found a mistake in your filings to HMRC, disclosing the error or omission before HMRC send a nudge letter or open an enquiry will lead to the most favourable outcome for you.
The nudge letters issued to date have covered a wide range of topics including:
- Overseas income and gains
- Coronavirus Job Retention Scheme
- Research and Development
- Annual Tax on Enveloped Dwellings (ATED)
- Capital Gains Tax (CGT on property disposals)
- Disposal of unlisted shares
HMRC have recently launched a One to Many (OTM) letter or nudge letter campaign relating to income from short-term property letting. The letter says that HMRC’s records show that the person may have earned income from short-term property lettings and not told HMRC about it. This means they may owe tax on the income. HMRC are suggesting that if taxpayers have previously undeclared income to disclose, they must use HMRC’s Digital Disclosure Service (DDS) process to disclose the income to HMRC. HMRC has provided the following additional information about the campaign. HMRC is working with online providers for short-term lettings, such as Airbnb, to help their customers to understand how much tax they should be paying and help them get it right first time. A small number of people who might have earned income from short-term property letting will receive the letter between February and March 2023.HMRC started to issue the letters during the week commencing 6 February 2023.
We have experience in making successful disclosures to HMRC with obtaining the most favourable result for clients, allowing them to draw a line under the matter and move forward.
Should you require any professional advice please contact us
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