HMRC letters to company directors on undeclared dividend income

hmrc letter 1

HMRC is contacting Company directors suspected of receiving dividends without declaring the income on their Self-Assessment Tax Returns Business owners have been receiving letters from HMRC as part of a recent campaign. These letters notify them about the potential requirement to declare dividend income. HMRC has been conducting investigations on company reserves, specifically targeting those…

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HMRC Letters to landlords concerning rental costs

hmrc letter

HMRC One to Many Letters to Landlords From December 2023 onwards, HMRC has been issuing One to Many letters to taxpayers who filled out property income sections of their 2021/22 tax return and made claims for repair and maintenance expenses. HMRC is worried that recipients of this correspondence may have mistakenly included capital expenses within…

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Digital Marketplaces Reporting Side Hustles to HMRC

A group of people sitting around a phone with the word hhc on it, engaged in digital marketplaces and discussing side hustles while reporting their progress.

Update affects most Digital Marketplaces We are committed to providing exceptional financial guidance and services, so we are bringing to your attention the latest developments in tax regulations that could impact those earning additional income through online platforms. As specialists in navigating the complexities of tax compliance, we aim to keep our clients and the…

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New HMRC Letter Campaign: Landlords Incorporation Relief 2017/18

A computer screen displaying an application form for Landlords Incorporation Relief, as part of an HMRC letter campaign.

Understanding the New Compliance Drive in Property Taxation Introduction: A Focused HMRC Initiative on Property Tax Compliance HM Revenue & Customs (HMRC) has embarked on a crucial campaign, turning its attention to a specific sector of the property market: buy-to-let landlords. This campaign specifically addresses those who strategically incorporated their property businesses into limited companies…

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HMRC’s Scrooge-like Plan to Save Money: No More Letters About Your Refunds

Scrooge-like Santa Claus with his reindeer in a sleigh.

HMRC has axed the practice of sending out letters informing taxpayers of their self-assessment repayments, citing the practice as causing unnecessary confusion and increased customer queries. This change, effective from December 7, 2023, applies to all Bacs self-assessment repayments, affecting both tax advisers and individual taxpayers. Instead of traditional letters, HMRC will now resort to…

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HMRC’s New Campaign: A Closer Look at Crypto Tax Compliance

A stack of gold coins on a table next to a bitcoin chart, highlighting Crypto Tax Compliance.

Introduction The phenomenal growth of cryptocurrencies has brought with it a plethora of challenges, particularly in the realm of taxation. Her Majesty’s Revenue and Customs (HMRC), has recognised the need to address this issue proactively, implementing a series of initiatives to enhance tax compliance in the crypto realm. HMRC’s New Initiatives: A Path to Tax…

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Guess Who’s Not Answering? The HMRC Helpline Adventures

An illustration of a man sitting at a desk in an office, possibly involved in HMRC-related Helpline Adventures.

HMRC’s seven-week service reduction During the busiest period of the tax year, HMRC plans to significantly reduce access to its self-assessment helpline, focusing only on complex queries from Monday, 11th December 2023. HMRC has unexpectedly confirmed that from 11th December until 31st January, most callers to the self-assessment helpline will be redirected to online services,…

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From Registration to Recovery: The Complete UTR Number Guide

An example of how to write a letter to a friend about the recovery from an illness.

Understanding Your Unique Taxpayer Reference (UTR) Number Welcome to an essential read from Mercian Accountants, where we demystify one of the critical elements of UK taxation – the Unique Taxpayer Reference (UTR) number. Designed to provide clarity and insight, this guide is invaluable for anyone navigating the UK tax system, whether you’re a self-employed individual,…

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Electronic Sales Suppression: HMRC Voluntary Disclosure

A close up of an old fashioned cash register, showcasing its nostalgic charm while evoking thoughts of potential instances of Electronic Sales Suppression.

HMRC is sending letters to businesses that may not have paid the correct income tax, corporation tax, or VAT due to misuse of their till systems. The letters are intended to provide an opportunity for businesses using electronic sales suppression (ESS) to get their tax affairs in order by voluntarily disclosing undeclared sales to HMRC.…

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Understanding Full Expensing

Jcb backhoe loader with Full Expensing.

Full expensing is a tax relief scheme that allows companies to claim 100% of the cost of qualifying plant and machinery all in one go. This tax incentive was introduced in the Spring Budget 2023 and runs from 01 April 2023 to 31 March 2026. Why Full Expensing Matters This tax relief measure encourages UK…

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