020 8339 1930
If you have overseas assets, or you receive income or gains from overseas assets, you may have received a letter from HMRC asking for further information. These letters are called ‘nudge letters’ by HMRC and they serve as a prompt for taxpayers to consider whether they are properly declaring overseas income or gains in the UK.
Nudge letters are issued when HMRC becomes aware that you might have non-UK assets, for example you might have savings in an overseas account. Be mindful that this alone does not mean you owe any tax; the letter is simply a nudge to you to consider whether you need to take action. It may be that you have already made full disclosure of the income or gains on your UK tax return, or that you are non UK resident and have no obligation to do so.
A nudge letter will ask you to complete a certificate of your tax position and it is advisable when completing this to also send a letter explaining the position.
There are two main responses available on the certificate:
Disclosures are typically made online through HMRC’s Worldwide Disclosure Facility (WDF). However, if you receive a letter and realise you need to make a disclosure, it is advisable to contact HMRC separately to start the disclosure process.
If you do discover a tax shortfall, the sooner you make a full disclosure to HMRC the better as this will minimise any penalties you may need to pay. In very serious cases of fraud, continued delays may result in criminal proceedings. It may be the case that a disclosure through the WDF is not appropriate to your circumstances, in which case the options on the certificate may not be appropriate.
When completing the certificate bear in mind that errors or deliberately false statements will be treated as a criminal offence. If this is discovered by HMRC in the future, you may be subject to an investigation and prosecution.
If you have received a nudge letter from HMRC and are unsure how to complete the certificate, please take professional advice first. You can get in touch via partners@rjp.co.uk
I wanted to write and express our gratitude for your help and hard work in getting Probate through and settling all the taxes. I am so pleased that we selected RJP, as your professional help and updates throughout this process have been invaluable. If at any time in the future Probate assessment may be needed, you will be our first port of call. Once again, many thanks to the whole team.
Dan Cook, Probate clientI just wanted to drop you a short note to say how grateful I am for the support that RJP has provided over the past 4 weeks while our Financial Controller was away. I struggle to comprehend how much work your staff get through during their weekly visits and they are always a pleasure to have around the office.
I Evans, CFO, MoblicitiJust a quick e-mail from me to thank you for achieving the target for producing the draft accounts – it is very much appreciated and gives a first class impression of your firm. Many thanks.
J Stanfield, Chairman, BBS Actuaries LtdI would like to take this opportunity to thank you very much for the amazing job you have done navigating us through this whole process. My family and I also really appreciate the care and compassion demonstrated by you and your team in every dealing. Our thanks to everyone.
M Goldsmith, Probate ClientRJP provide our company with a complete service which takes the stress and strain away from the day to day running of our accounts! Their understanding of our business and their patience and advice is invaluable.
Outsourcing Client
If you sell a property and incur capital gains tax on the transaction, you will need to file a tax return and also pay any tax that is due within 60 days of completion, or penalties will arise. Need help with your property taxes? Talk to us.