HMRC Nudge Letters
What It Means & How We Can Help
Received a 'Nudge Letter' From HMRC?
What Is a Nudge Letter?
HMRC’s “nudge letters” are part of a wide-reaching compliance campaign known as a one-to-many approach. These letters aren’t formal investigations, but rather a precursor warning that HMRC has information suggesting you might owe tax. Failure to respond to a nudge letter will almost certainly result in HMRC opening a formal compliance check.
Seeking Professional Tax Advice
At WTT we have a comprehensive understanding of HMRC enquiries and investigations. If you’ve received a “nudge letter” from HMRC, it means they believe there may be tax you need to declare or correct. These letters should be treated seriously and be responded to as soon as possible.
Our experienced tax advisors specialise in helping individuals and business owners respond to HMRC compliance checks. We are here to assist you to:
Review your tax position
Identify any missing or misreported income
Amend existing tax returns
Prepare a voluntary disclosure
Communicate with HMRC on your behalf
Explaining to HMRC why the return is correct
What Is This Letter About?
You’ve received this letter as part of an HMRC one-to-many campaign. These letters are sent based on data suggesting you may have undeclared income or gains. HMRC is prompting you to review your tax records and correct any errors before further action is considered. Early action may help to reduce any potential penalties.
Why Did HMRC Contact Me?
HMRC wants to encourage you to check whether you’ve correctly declared all relevant income, gains, and benefits for the tax year in question. It can relate to various sources like rental income, dividends, capital gains, overseas income, cryptoassets, or benefits from a company that weren’t reported on your Self-Assessment return.
What You Should Do Next...
HMRC expects you to check your records and confirm all income, gains, and benefits for the relevant tax year have been declared.
We can help assess your position, respond on your behalf, and prepare any voluntary disclosure required to bring your tax affairs fully up to date.
.png?width=2000&height=2000&name=Untitled-18%20(2).png "How WTT can help")
Seeking Professional Tax Advice
How WTT Can Help
At WTT, we specialise in supporting individuals and businesses who have received HMRC nudge letters across a wide range of issues, including offshore income, company control, cryptoassets, rental income, and more.
We are here to help you understand exactly why you were contacted, assess your position, and take the necessary steps to protect your interests. If any undeclared income, gains, or benefits are found, we will take appropriate corrective action that gives you the best outcome. This includes calculating any additional tax and interest owed and negotiating with HMRC to reduce or eliminate penalties wherever possible.
Frequently Asked Questions
Q: Is this a formal tax investigation?
A: No, nudge letters are part of a campaign to encourage voluntary compliance. However, ignoring these letters can lead to a full enquiry.
Q: What happens if I ignore this letter?
A: If you take no action in response to receiving a nudge letter, HMRC may open a formal compliance check, impose penalties, and charge interest.
Q: What kind of information does HMRC have?
A: HMRC receive and use data from financial institutions, property records, Companies House, and international sources.
Q: What happens if i do not agree with HMRC?
A: If you feel you have incorrectly received a nudge letter from HMRC and have no income to correct or declare, we strongly advise you seek a tax advisor to review your position and respond appropriately.
Tax Advice
Future Planning
Our range of tax planning and advisory services can help safeguard you, your family and your assets. Our services offer future protection with tax planning tailored to you and your circumstances.
Accountancy
Accounting Services
WTT Accountancy is here to help shoulder the burden of the accounting process at your request, by undertaking certain administrative tasks, giving you more time to focus your efforts elsewhere.
Legal Services
Stay compliant
We understand the specific nuances of the tax and legal requirements surrounding the contracting workforce. By working across the entire supply chain, we can ensure all parties are compliant.
"I was involved in a complex and drawn-out HMRC investigation. WTT navigated every challenge with professionalism. They protected my interests, kept me informed, and ultimately brought the matter to a successful close." Ex-Contractor
“We were concerned about the impact of IHT on our family home. WTT guided us through available reliefs and helped us restructure our estate planning. Their expertise gave us peace of mind for our future.” High-Net-Worth Estate Planning
“I had years of crypto trading history and no idea where to begin with taxes. WTT helped me untangle it all and made sure I stayed compliant while minimising my liability. Crypto Investor
Our Tax Specialists
Meet Our Team
WTT Group provides expert, award-winning advice to help individuals and businesses navigate a wide range of comprehensive tax matters.
The tax landscape is undergoing continuous transformation, marked by increasingly intricate legislation and stringent legal requirements. Our vast knowledge and experience on tax, legal and accounting issues puts us in a unique and specialist position to provide all-round support to our clients.
Our Tax Team is led by Tom Wallace. Tom joined WTT in 2017, setting policy and strategy for clients having their tax affairs enquired into after a 20 year career with HMRC, primarily in tax investigations. As a qualified tax inspector, he led teams across business segments from global household names to mid-size businesses. After joining the newly formed Complex Evasion team he investigated offshore structures, providing a unique insight into tax compliance.
Tom Wallace
Director of Tax
thomas.wallace@wttconsulting.co.uk
+44 (0)20 3468 0000
Got Some Questions?
Get In Touch
If you have any queries or were wishing to discuss any of our services in more detail, our team of experts are always on hand to answer any questions you may have. For a no obligation discussion about your options, or for advice on a particular matter, contact us at:
T: +44 (0)20 3468 0000
