HMRC are employing a new tool in their bid to capture more tax revenue . . . a Nudge Letter. Taxpayers need to be aware of these, and know how to deal with them.
A Nudge Letter is an alternative to a full enquiry into a tax payer’s affairs, that HMRC traditionally use and is being deployed by HMRC due to limited resources available to them.
Whilst these nudge letters do not constitute a formal enquiry by HMRC, they should not be ignored!
They will usually be prompted by information that HMRC has on the tax payer that suggests full disclosure of their earnings and income has not been made correctly.
They will also contain a Certificate of Tax Position.
If you receive a Nudge Letter from HMRC, please get in contact with your accountant before responding.
