HMRC have recently issued “nudge” letters on a number of topics.
The deemed domicile campaign is an educational letter to those HMRC believe are deemed UK domiciled. No response is required but you should check that none of the common risks listed in the letter apply to you as HMRC may seek to apply increased penalties if you claim to be non-UK domiciled and it later transpires that you are deemed UK domiciled.
The Statutory Residence Test (“SRT”) campaign is also an educational letter to check that the SRT has been properly applied, including details of what documents you should retain to order to support your residence position. Again, no response is required but you should ensure that your records are robust. If an enquiry later finds that you have made an error included in the HMRC letter, more significant penalties may apply.
Finally, HMRC have issued nudge letters to those who have been issued with 2017/18 Self-Assessment Returns but have not yet filed them.
There were already a number of nudge campaigns underway, including property disposals, benefits in kind, investment income, ATED and offshore income.
It is recommended that any person receiving such a letter from HMRC speak to their tax agent and/or obtain tax advice before taking any action.
If you have any queries regarding the latest letters issued by HMRC, please speak to your usual KPMG contact or contact me.
Senior Manager: Tax
KPMG in the Isle of Man
Director, Tax, & Head of Family Office and Private Clients
KPMG Crown Dependencies