With resources stretched at HMRC at the best of times, but even more so currently, they are writing ‘nudge letters’ to taxpayers to encourage them to check their returns, but the copy that’s sent to tax advisors doesn’t necessarily tell us who they have written to.
HMRC uses data from many sources such as banks, land registries, and Companies House to cross-check information reported on self assessment tax returns. If HMRC’s computer finds a mismatch between the third party data and your 2018-19 tax return you may receive a letter asking you to review your return.
Thousands of landlords could be hit with much higher tax bills when they come to sell their properties, as a result of budget tax changes to be implemented in 2020.