One-to-many ‘nudge’ letters and data accessible to HMRC

18th November 2022

In the past few months HMRC have been issuing an increased number of ‘One to Many’ nudge letters to individuals who they feel should be completing a self-assessment tax return or have filed an incomplete self-assessment tax return. A “One to Many” letter is HMRC’s way of sending one nudge letter to many clients allowing HMRC to reach many taxpayers about specific issues, where HMRC’s data show that there may be an area of non-compliance.


During November 2022 HMRC are sending “One to Many” letters to taxpayers who have submitted deposits into the Tenancy deposit scheme but, according to HMRC, have under-declared their rental income in their 2020/21 tax returns. Other recent “One to Many” letters have included; Persons with significant control, anyone who can exert significant influence or control over a company, who are not submitting self-assessment tax returns, and Taxi Drivers who drive for an online platform such as Uber or Lyft.


It is important to note that whilst these letters state they are not a formal compliance check they should not be ignored. The nudge letters are an invitation to consider if you have underdeclared taxable income previously or if a self-assessment return should have been filed.


Due to the nature of HMRC, the new regulatory powers they have been given and the recent growth of digital communications, HMRC have access to a vast amount of data from many sources, including but not limited to:


  • Other government departments and agencies; DVLA, Land Registry, Border Agency, Companies House, Council tax records, electoral roles, overseas tax authorities and many others.


  • All tax returns filed including income tax returns, VAT returns, corporation tax returns and PAYE submissions.


  • Financial records held by banks and building societies, online payment providers, debit and credit card accounts, crypto asset platforms, credit reference agencies and insurance companies.


  • Online sales websites such as Amazon and eBay as well as property websites like Rightmove and Zoopla.


  • All social media accounts and posts.


As HMRC have access to so much data it is becoming more common that areas of non-compliance and underdeclared income are being highlighted. Since UK tax compliance puts responsibility on the taxpayer, it is down to the taxpayer to ensure that all their taxable income and gains are declared.

If you have received a ‘One to Many’ nudge letter, please ensure you contact your usual Whitings contact or local office.

Disclaimer - All information in this post was correct at time of writing.
Other Blogs
Jaimie King
19th April 2024 Audit exemption limits set to rise

What could the changes to Audit exemption limits mean for you?   The government has recently announced changes to company law that will see company size thresholds increased by 50%. This is hoped to reduce complexity and additional burden for companies. These changes are intended to be in place for year ends commencing on or…

Paul Jefferson
18th April 2024 Beware of VAT refund fraud

Beware of VAT refund fraud!   We have become aware of several recent cases where taxpayers’ bank account details have been amended on the HMRC portal, without their knowledge, so that VAT repayments have been fraudulently diverted to a third party.   It seems that HMRC have been acting on the basis of a fraudulent…

Andrew Band
17th April 2024 Whitings 2024 Annual Farming Seminar

Our Whitings 2024 Annual Farming Seminar is just around the corner.   Farming always has to cope with changing environment, weather, commodity prices, political changes, etc. This year these challenges feel heightened and this is why we are pleased to welcome back speakers from the Andersons Centre to inform us of these changes and what…

Amanda Newman
17th April 2024 Buy To Let through a Limited Company

There continues to be an ongoing debate when buying a residential property to let out about whether to buy this personally or set up a limited company to own it. Unlike our sole trader v limited company comparisons for a trading business there is not a clear division based on profits. There are a lot…

Nick Edgley
11th April 2024 Do you need to re-register for Child Benefits?

If you’ve heard about the changes post 5 April 2024 and are wondering whether you need to re-register for Child Benefits, this is the blog post for you.   If you have been affected by the increase in the High Income Child Benefit Charge cap to £60,000, then you may need to restart your Child…

Peter Brown
10th April 2024 Pension Contributions for directors

Are you thinking about planning ahead for retirement and want to find out more about Pension Contributions for directors?   When it comes to planning for your retirement, Company pension contributions can offer significant benefits in terms of reducing your company’s Corporation Tax bill. Here’s how you can use both personal and company contributions to…