Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

HMRC nudge letters cause needless worry to UK taxpayers and often achieve nothing

by October 6, 2023
October 6, 2023
HMRC nudge letters cause needless worry to UK taxpayers and often achieve nothing

Thousands more nudge letters being sent out by HMRC are causing needless worry to UK taxpayers, and are unnecessary.

Robert Salter, an international tax expert at tax and advisory firm, Blick Rothenberg, said: “HMRC have sharply increased the number of ‘nudge letters’ sent to UK taxpayers in the 2022/23 UK tax year, because of international data sharing. Nudge letters increased to almost 24,000 for the year ended 5th April 2023 compared to ca. 21,000 in the previous tax year up by some 15%.”

Salter added: “The problem is that many of these nudge letters are the result of poor HMRC data analysis and create needless worry for the individuals concerned and result in unnecessary professional costs.”

Salter said: “HMRC often appears to simply take the data it receives from international sources at face value and sends out letters to taxpayers in a shotgun-like manner. It does not properly assess whether the foreign information is actually taxable in the UK, for example, or whether it has already been reported in the individual’s UK tax return declarations.”

Salter added: “Even where the income or gains apparently haven’t been reported on a UK tax return, there can be a number of perfectly legitimate reasons for this including:

The ‘domicile’ basis of the individual concerned – non-domiciled individuals are not automatically taxable in the UK on foreign source income or gains.
The differences between UK and foreign tax years; and
The fact that certain foreign income may not be taxable in the UK under Double Tax Agreements.”

Salter concluded: “Whilst it is clearly correct for HMRC to use the data it receives from international data sharing agreements, to target those taxpayers who are deliberately (and illegally) concealing income and capital gains outside the UK, the Revenue should not simply be targeting taxpayers in a helter-skelter, shotgun approach.

“By simply issuing nudge letters in this pell-mell approach, the Revenue is causing needless anxiety and actually creating additional work (and costs) for taxpayers, their advisors and in many respects its own staff.”

He added: “It would be much more efficient for everyone concerned, if the Revenue did a proper analysis of the data it receives, assessing this against factors such as the information which has already been filed, a taxpayer’s domicile status and the terms of the UK’s Double Tax Agreements before issuing enquiry letters to those taxpayers with missing data.”

Read more:
HMRC nudge letters cause needless worry to UK taxpayers and often achieve nothing

0
FacebookTwitterGoogle +Pinterest
previous post
How Bad Are Saudi Arabia’s Human Rights Abuses?
next post
BA pilots on brink of three-year pay deal to avert threat of strike

You may also like

Just 40% of UK SMEs have started on...

June 29, 2023

International Investment Summit delivers £63bn boost and 38,000...

October 15, 2024

Bank of England delays next interest rate decision...

September 9, 2022

Urgent call for cyber defence as AI-Driven Ransomware...

January 24, 2024

Half of UK workers uninspired by the office:...

April 26, 2023

How to create eye-catching email subject lines

October 25, 2022

Will a ban on cold calling make any...

May 11, 2023

UK Retail Sales Stall in March Despite Early...

April 19, 2024

Brexit Pubs Guarantee announced in Spring Budget comes...

August 1, 2023

Consumer squeeze ‘worse than I have ever known’...

October 6, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,567)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved