Service

Had a Nudge Letter From HMRC?

It is stressful, and you do not have to deal with it alone. We explain what it means, check your position and, if something needs putting right, do it properly. All in confidence.

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At a glance

Help with HMRC nudge letters, led by Rob Osborne CTA, a former HMRC Senior Tax Inspector and Fraud Investigator.

Who this is for

•Anyone who has had a letter or email from HMRC asking them to check their tax affairs
•People whose letter mentions overseas income or accounts, rental income or crypto
•People who have been sent a certificate of tax position to complete
•Anyone unsure whether a letter applies to them

What is involved

You send us the letter and a few details. We tell you what it means and what is likely to be involved before you commit to anything. Our fee is confirmed before any work starts.

First, a deep breath

A letter is a prompt, not a verdict.

HMRC is using nudge letters more and more, and they now reach well beyond landlords and people with overseas accounts. Recent letters have asked very wealthy individuals to provide information about their assets and financial arrangements.
A nudge letter is sent to many people at once, based on information HMRC holds. It asks you to check your own tax position and, if something is wrong, to put it right.
Getting one does not mean you have done anything wrong. HMRC's information can be incomplete or mistaken, and the letter is often the first chance to say so.
If something has been missed, HMRC says penalties will usually be lower if you tell it yourself, so coming forward early helps.
The one thing that does not help is ignoring it. If you do not respond, HMRC may open a compliance check into your tax position.

Your situation

What the letter is about, and what we do.

The letter is about overseas income or accounts

HMRC receives information about financial accounts held abroad from tax authorities in other countries, and uses it to write to people who may not have reported the income. Interest, dividends, rent from a property abroad and gains can all be involved. Some of these letters include a certificate of tax position to complete and sign.

What we do

You send us the letter and your recent tax returns. We read the letter and tell you in plain English what it is asking for, and by when.
We compare your returns with your overseas statements, year by year, converting foreign amounts at HMRC's exchange rates.
If everything was reported, we help you tell HMRC so. If something was missed, we work out the tax, interest and penalty position for every year affected and explain it to you before anything is sent.
If there is a certificate to sign, we go through it with you first. You never sign something you do not understand.
We make the disclosure to HMRC for you, normally through its Worldwide Disclosure Facility, and deal with HMRC afterwards.

The letter is about rental income

HMRC runs a Let Property Campaign for landlords who have not declared all their rental income. Letters about rent are usually based on information HMRC has about a property you own or let.

What we do

You send us the letter and tell us about the property: when you started letting it, who owns it, and what rent you received.
We work out the taxable profit for each year, with the costs you are entitled to claim, and any mortgage interest relief given the way the rules require.
We check whether the rent has been declared in whole or in part, and which years are affected.
We prepare the figures and explain the tax, interest and likely penalty before you decide to go ahead.
We make the disclosure to HMRC, usually through the Let Property Campaign, and keep you informed until it is settled.

The letter is about crypto

HMRC has a separate service for unpaid tax on income or gains from cryptoassets. The sums are often worked out from long histories across several exchanges and wallets, so the difficult part is the records, not the letter.

What we do

You send us the letter and whatever exchange and wallet histories you can get. Gaps are normal, and we help you fill them.
We rebuild the full history and calculate the gains and income under HMRC's rules, including the same-day, 30-day and pooling rules.
We compare the result with what was reported on your returns, year by year.
If tax is owed, we explain the amount, the interest and the likely penalty position before anything is sent.
We make the disclosure through HMRC's crypto disclosure service and deal with HMRC afterwards.

You think you have declared everything

Sometimes the letter is simply wrong: HMRC may hold incomplete information, the income may be covered by an allowance, or it may already be on your return. HMRC still expects you to respond and explain.

What we do

You send us the letter and your returns for the years concerned.
We check what the letter is based on against your records.
If you have nothing to put right, we write to HMRC for you, setting out why. A clear reply now usually saves questions later.
If the check shows something was missed after all, we tell you straight away and move to putting it right. You decide how to proceed.

You are not sure what the letter is about

Some letters are general and do not say exactly what HMRC thinks is missing. Others cover income that does not fit neatly under overseas, rental or crypto: a side business, dividends, or gains on shares.

What we do

You send us the letter, with no need to work out the answer first.
We tell you what we think it is about and what we need from you to be sure.
We review your returns and records against it, and tell you plainly where you stand.
If something needs correcting, we prepare the disclosure, normally through HMRC's Digital Disclosure Service, and explain the figures first.

What it costs

Fixed fees, agreed before we start.

Where there is no tax to pay, our fixed fees start at £395 plus VAT. This covers completing the certificate of tax position (where your letter includes one) and a letter to HMRC explaining the circumstances.

Where a disclosure is needed, our fixed fees are tiered according to complexity and start at £695 plus VAT.

Once we have seen your letter, spoken to you about the circumstances and agreed the best way to deal with it, we confirm the fee in writing before any further work starts, so you know the cost before you decide to go ahead.

How we work

We take stock before anything goes back to HMRC. Nothing is sent in a hurry.
You know the cost first. Our fee is confirmed before any work starts.
You decide at each stage. We explain the options and what each is likely to mean.
We keep you informed, and we deal with HMRC so you do not have to.

A word from Rob

Rob Osborne CTA

Chartered Tax Adviser and former HMRC Senior Tax Inspector

A letter from HMRC is unsettling, and the natural reaction is either to reply straight away or to say as little as possible. Neither helps. The way a matter is handled at the start often shapes how it ends.
I spent years on the other side of the table. As a Senior Tax Inspector and Fraud Investigator at HMRC, I selected cases for enquiry, ran investigations and judged whether the explanations and disclosures in front of me were credible. I worked in HMRC's elite Specialist Investigations section in London, where I dealt with the most serious cases. I later worked at EY, advising clients rather than investigating them. That gives me a unique perspective: I know how HMRC builds a case, what it is looking for and when it is ready to settle, and I bring all of that skill and experience to bear for every client.
You will not be required to meet or speak to HMRC. We handle that for you, and I know how to handle those discussions. If something does need putting right, we are especially skilled at reducing penalties, using our extensive knowledge of the law to limit the number of years that have to be included in the disclosure.
My approach is calm, thorough, prepared and steadfast. We take stock before anything goes back to HMRC. We work through the records properly, so there are no surprises. We go into every letter and meeting knowing the facts, the figures and the questions HMRC is likely to ask. And we stay the course: cooperative and courteous with HMRC, but firm where the law and the facts are on your side, until the matter is settled fairly. If you have had a letter, send it to me.
Rob Osborne CTA, Director

FAQ

Frequently asked questions

What is a nudge letter?

A letter or email that HMRC sends to many people at once when information it holds suggests income or gains may not have been reported. It asks you to review your own tax position and, if necessary, correct it.

Have I done something wrong if I get one?

Not necessarily. Letters are sent on the basis of data, and the data is sometimes incomplete or mistaken. If you have missed something, HMRC says penalties will usually be lower if you tell it yourself than if it has to find out.

Do I have to reply?

You should. If you do not respond, HMRC may open a compliance check into your tax position. If you think you have nothing to put right, HMRC still expects you to confirm that and explain why. We can do that for you.

Will I have to pay a penalty?

It depends on why the mistake happened and how you deal with it. If you took reasonable care, there may be no penalty at all. Otherwise penalties are set by reference to the tax, and are lower where you come forward and co-operate fully. We explain your position before anything is sent.

How many years will HMRC look at?

It depends on the reason for the mistake and whether anything is overseas. We work out which years are in scope and tell you, so you are not left guessing.

Do I have to use an adviser?

No. Many people ask us to help because the figures cover several years, the penalty position needs care, and we deal with HMRC on their behalf.

What if HMRC has already opened an enquiry?

Tell us straight away. HMRC says it is unlikely to accept a disclosure through its disclosure facilities once it has opened an enquiry or compliance check, so the right approach is different. We can take over the correspondence and protect your position.

How much will it cost?

Our fees are fixed. Where there is no tax to pay, they start at £395 plus VAT, which covers completing the certificate of tax position (where your letter includes one) and a letter to HMRC explaining the circumstances. If a disclosure is needed, fixed fees are tiered according to complexity and start at £695 plus VAT. We confirm the fee in writing before any work starts.

Is this confidential?

Yes. We handle everything in strict confidence and only communicate with HMRC with your authority.

Send us the letter

Tell us briefly what you have received. We will reply in confidence and confirm the fee before any work starts.

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