How much nudging is going on?
HMRC have issued their figures on the amount of nudge letters they are sending to taxpayers and the criminal cases underway.
HMRC issue 177,000 “nudge letters” in order to tax offshore income or gains
According to City AM, HMRC continue to pursue non compliant UK taxpayers by issuing nudge letters. As previously covered, HMRC’s use of nudge letters is a cost efficient way of recouping tax for the Exchequer without the need to launch a tax investigation into a taxpayer’s past tax compliance. But beware, there are risks for both taxpayer and adviser alike.
What will HMRC be sending you for Christmas this year?
For many taxpayers, a brown envelope from HMRC will not be well received at any time of the year. Odds on it will contain bad news. It may be the start of an investigation. It may be a “nudge letter” or a “Check on tax position”. It almost certainly won’t be a Christmas card!
HMRC issue latest round of “nudge letters”
Periodically HMRC issue “nudge letters” to taxpayers as a means of persuading them to reconsider their past UK tax compliance. The content of such letters is based on information already received by HMRC form any of its numerous sources including under the Common Reporting Standard (CRS).
What HMRC giveth in 2020, will HMRC taketh away in 2021?
As part of the UK government’s support to the economy in 2020 in response to the pandemic, exceptionally HMRC have been making payments to taxpayers rather than collecting tax payments from taxpayers. Clearly, this cannot continue indefinitely.