HMRC has recently launched a new wave of "nudge" letters aimed at individuals listed as Persons with Significant Control (PSCs) of companies. These letters are part of an effort to ensure that PSCs are meeting their tax obligations, with a particular focus on two groups:
- PSCs who have declared low income: If your most recent self-assessment tax return shows income below £100,000, HMRC may be concerned that all income has not been fully declared.
- PSCs who have not submitted a tax return: If you are named as a PSC but have not yet filed a tax return, HMRC is prompting you to assess whether you need to register for self-assessment and submit any outstanding returns.
The clear implication from HMRC’s briefing suggests that their view is that PSCs may have missed reporting on benefits received from the relevant company, such as personal expenses covered by the company, loans not repaid, or the use of company assets. This transparency campaign highlights the need for PSCs to carefully review their filings and make any necessary corrections to avoid potential penalties.
If you have received a letter or believe you might be impacted, our team of tax experts is ready to assist you in:
- Reviewing your self-assessment filings to ensure that all income and benefits from your company are properly declared.
- Guiding you through registering for self-assessment if necessary.
- Representing you in any compliance checks initiated by HMRC.
Contact us today to ensure you stay compliant and avoid any potential penalties. Let us handle the complexities of your tax obligations, giving you peace of mind.