In recent months, HMRC have issued “nudge letters” to the following groups of individuals and businesses:-
- Undeclared capital gains on the sale of land and property in 2018/19 tax year
- Undeclared income or gains from overseas assets
- Incorrect claims under the furloughing (CJRS) or SEISS schemes
- Making Tax Digital (MTD) for VAT
- Use of the Profit Diversion Compliance Facility (transfer pricing, diverted profits tax, etc.)
This marks a significant increase in HMRC’s activities and it is likely that the subject matters being covered by these letters are going to get broader as the information they receive from the public and private sectors increases.
Any individual who needs to make a disclosure of undeclared income or gains on their personal or business side should consider making a disclosure as soon as possible.