.png)
.png)
Many Taxation readers will be familiar with HMRC’s nudge letters, where taxpayers are asked to review a particular aspect of a recent return or to consider whether they have undeclared income. I am not against this approach in the right circumstances: it can be a legitimate use of HMRC’s powers and does seem to be effective. However, I was surprised by the latest nudge letter, concerning provisional figures in 2021-22 self-assessment tax returns (tinyurl.com/hmrcagentprov), which is addressed to agents not taxpayers.
The letter concern returns which contain provisional figures. I don’t mind HMRC gently prompting agents that amended returns need to be submitted (though surely agents know that anyway), but the tone of this letter seems to me to be unnecessarily hostile. For example, if you don’t have the actual figures, you need to find these as soon as possible and submit an amended return by 31 December 2023. That is not a statutory time limit, just a date chosen for HMRC’s own convenience. If HMRC wants to work with agents to maintain compliance standards, as it says it does at the beginning of the letter, wouldn’t it have been better to say something like ‘although the deadline is 31 January, it would help us if the amended return were submitted before then’?
Then there is this: ‘We’ll call you for an update in the next two weeks. If you have any questions in the meantime, please call us on the number above.’ Given the huge problems currently being caused by HMRC delays, it does seem extraordinary that its resources are being committed to chasing up a letter only 14 days after issue. Again, this hardly seems like working with tax agents.
Time for a different approach.
If you do one thing…
See the latest HMRC advice on correction of payroll errors in Agent Update 111: tinyurl.com/au111payroll.
