HMRC are determined to close the tax gap and increase its revenue from taxpayers. To further this aim, it is set to launch two new nudge letter campaigns in the next few weeks ...
Rather than focus on offshore matters, these new campaigns are aimed at those individuals who have disposed of a UK residential property, and those with taxable employment benefits.
Details of property disposals come via various sources, including the UK Land Registry. This is being used to write to taxpayers who have disposed of a property in the 2018/19 tax year and have not declared the disposal. Taxpayers are being asked to consider their Capital Gains Tax position in respect of the sale of their property.
The second campaign, again looking at the 2018/19 tax year, targets taxpayers where taxable employment benefits HMRC has records of do not match details submitted on personal tax returns. There are approximately 1,700 individuals on this list, and all will be sent letters.
Unlike previous nudge letters, HMRC is not asking taxpayers to sign and return a certificate of tax position which I feel is welcome news as many accountants and tax professionals have always criticised the wording of the nudge letters, almost making it seem that completion was mandatory.
But there is a need to act should you receive a nudge letter. If a disclosure is needed, then HMRC will certainly be looking to impose penalties, so my recommendation is to speak to your accountant to ensure that you are up to date with your tax affairs, and put them right should something from 2018/19 have been forgotten.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.