On this occasion HMRC has provided advance warning that they
will be distributing 'one to many' nudge letters this
month.
HMRC will be using this approach to reach a large number of
individuals using one standard message, in this case to warn
taxpayers that they may have incorrectly declared income received
from offshore investment funds.
What is HMRC's 'one to many' approach?
HMRC's 'one to many' approach forms part of their
'promote, prevent, respond' strategy. It is used to
influence the behaviours of taxpayers and to highlight the risks of
non-compliance. It is important to note that receipt of a 'one
to many' nudge letter does not constitute a compliance check
(as opposed to the other recent nudge letters sent by HMRC –
you can read more about these letters in
our previous blog). As a result of this, HMRC is unable to use
the 'one to many' nudge letters to request additional
information from the taxpayer to show that their tax affairs are
correct.
