HMRC nudge letter help
If an HMRC nudge letter has arrived, we review it, check your records against what HMRC is likely to hold, and handle any disclosure that is needed from start to finish.
Why have you received a nudge letter?
- A nudge letter is HMRC prompting you to check your own tax affairs, usually because third-party data suggests something may be missing from your returns.
- Common triggers are overseas bank accounts and investments, rental income and cryptoasset activity.
- Over 100 countries now exchange financial account information with HMRC under the Common Reporting Standard (gov.uk, Worldwide Disclosure Facility guidance), so a letter about money or assets abroad normally means HMRC already holds data with your name on it.
- What the letter means, what the certificate of tax position is, and the mistakes people make in the first week are covered in our guide, what to do when an HMRC nudge letter arrives. This page is about what we do when you bring the letter to us.
What do we do when you bring us the letter?
Four things, in order.
First, we read the letter and identify what prompted it and what HMRC is actually asking for, including any certificate of tax position, which we advise on before anything is signed.
Second, we check your records for the years in question against your filed returns.
Third, we give you a straight answer: either your affairs are correct and we prepare a considered reply saying so, or there is something to put right.
Fourth, where a disclosure is needed, we choose the correct facility, prepare the figures for tax, interest and penalties, submit the disclosure and see it through to HMRC's acceptance.
The facility choice matters. Offshore income and gains go through the Worldwide Disclosure Facility. Undeclared rental profits go through the Let Property Campaign. Cryptoasset liabilities have their own route, covered on our crypto tax disclosure page. Other liabilities use HMRC's Digital Disclosure Service.
First, we read the letter and identify what prompted it and what HMRC is actually asking for, including any certificate of tax position, which we advise on before anything is signed.
Second, we check your records for the years in question against your filed returns.
Third, we give you a straight answer: either your affairs are correct and we prepare a considered reply saying so, or there is something to put right.
Fourth, where a disclosure is needed, we choose the correct facility, prepare the figures for tax, interest and penalties, submit the disclosure and see it through to HMRC's acceptance.
The facility choice matters. Offshore income and gains go through the Worldwide Disclosure Facility. Undeclared rental profits go through the Let Property Campaign. Cryptoasset liabilities have their own route, covered on our crypto tax disclosure page. Other liabilities use HMRC's Digital Disclosure Service.
How does the engagement run?
You send us the letter, ideally before we first speak. We agree the scope and fee basis at the outset. From there:
- You authorise us to deal with HMRC directly (form COMP1a for disclosures), and from that point the correspondence comes to us, not to you.
- We give you a document checklist.
- We build the disclosure computations year by year.
- We agree the behaviour position with you honestly.
- We handle HMRC's questions until the matter is closed.
What does it cost to ignore the letter?
Nudge letters do not lapse. If HMRC receives no response and later opens a compliance check or enquiry, any disclosure then made is prompted rather than voluntary, which places it in a higher penalty range (gov.uk compliance factsheets CCFS7a and CCFS11).
- HMRC's assessment reach runs to 4 years as standard.
- It extends to 6 years for carelessness.
- It runs up to 20 years for deliberate failures.
- Interest accrues daily on unpaid tax from the original due date.
- A disclosure made after that point is prompted, which reduces the penalty mitigation available.
Frequently asked questions
Who handles nudge letter cases?
This work is led personally by senior managers. The wider team prepares the computations and document schedules under oversight throughout the engagement. Send the letter through and call 020 8554 2135, or email info@visionconsulting.co.uk. First conversations are confidential and at no cost. This is general information, not advice. Your position depends on your circumstances. Speak to us before acting.
