Danielle Ford and Riocard Hoye explain the proliferation of so-called ‘nudge letters’ from HMRC, and have some advice on what to do if a client receives one.
HMRC’s ‘One to Many’ approach, commonly referred to as ‘nudge letters’, is well- established by now. However, we have recently seen a flurry of new communications covering a range of issues. It seems sending a nudge letter is now HMRC’s go-to approach for any matters where they perceive there may be a tax loss or risk.
What is a nudge letter?
A nudge letter is where the same letter is sent to many individuals or corporates who meet certain criteria, either at once or in batches.
HMRC receives data from several different sources and checks this data against information it holds, including tax returns, before the nudge letter is sent.
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