Nudge Letters

These letters (which are not subject to the tax enquiry framework) are sent when HMRC believes there may be an issue with an taxpayer’s tax affairs, often based on information received from third parties or international data-sharing agreements, or HMRC’s analysis of other data.

Receiving a nudge letter does not necessarily mean that HMRC has already opened an investigation, but it does indicate that they are encouraging you to review your tax position and make a disclosure, if necessary. These letters should not be ignored, as failure to respond appropriately could lead to further scrutiny or a formal tax investigation.

It is crucial to seek expert advice before responding to a nudge letter. It is important that you do not provide HMRC with a signed certificate, frequently sent with the correspondence, irrespective of whether or not you have a disclosure to make.

While HMRC presents them as routine prompts, responding incorrectly could inadvertently trigger further inquiries, or higher penalties.

Berwick Tax has extensive experience in dealing with nudge letters, and can guide you on the best course of action. Whether a disclosure is required or a carefully worded response is needed to confirm your tax affairs are in order, we can handle the process on your behalf, ensuring the most favourable outcome.

If you have received a nudge letter from HMRC, get in touch with us for expert advice and support.