Date posted: 10th Oct 2022
HMRC are continuing the trend of nudging taxpayers about potential undeclared liabilities.
This is seen as a good strategy for the HMRC as it offers value for money, for the taxpayer, as the onus is then on the individual to declare any unpaid taxes to HMRC, rather than HMRC opening an enquiry and tying up staff resource.
HMRC are known to be actively nudging taxpayers about:
- Undeclared property income and asking them to complete a Let Property Disclosure.
- Undeclared property sales.
- Missing P11D benefits from tax returns.
- Overseas investment income.
- Dividend income from their own companies.
- Share disposals, particularly in relation to OMB’s where HMRC can see from Companies House there may have been a disposal of shares.
There are significant penalties for non-disclosure or inaccuracies on the tax return. However, where the taxpayer comes forward, without prompting from HMRC, these penalties can be lessened or even reduced to NIL if there is a reasonable excuse.
We have significant experience in helping new clients declare inaccuracies to HMRC and reducing penalties that HMRC propose to charge. Therefore if you believe that you may have undeclared income or gains to report, please give us a call to establish the most appropriate way forward.