Glossary · UK
What is HMRC Nudge Letter?
A compliance check letter from HMRC suggesting you may have underpaid tax or not declared income, prompting you to review and correct your affairs.
Full Definition
HMRC nudge letters are risk-based communications sent when HMRC has data suggesting a taxpayer may have undeclared income or underpaid tax. Common triggers include: offshore bank account data (from Common Reporting Standard), property sales not declared, Airbnb/short-let income, crypto asset gains, CIS deductions not matched. Nudge letters are not investigations but a prompt to "check and correct." Voluntary disclosure before formal investigation typically means lower penalties. HMRC has several disclosure facilities including the Let Property Campaign and the Worldwide Disclosure Facility.