HMRC’s Untaxed Interest Compliance Team has been busy issuing letters to people it suspects have received untaxed interest which they have subsequently failed to declare.
In what is clearly a bulk mailing exercise, judging by the number of generic letters we at Abbey Tax have seen this week, recipients of the letter are asked to check the entries on their tax return for the year ended 5 April 2015.
Copies of the letters are not being sent to accountants who represent the people involved, although the final sentence of the letter states ‘If you have a tax adviser, you may wish to show them this letter.’
Here is an extract of the generic letter:
Your Self Assessment tax return for the year ended 5 April 2015
Thank you for your tax return for the year shown above.
Why we’re writing to you
We regularly receive information from banks, financial institutions, third party intermediaries and social lenders providing details of untaxed interest paid to investors. Untaxed means tax hasn’t been deducted.
It’s important to make sure that the figures shown on your tax return are right. Sometimes people make mistakes because they don’t take enough care while others deliberately get their figures wrong. It’s your responsibility to make sure that your tax return is complete and correct. We want to give you the opportunity to correct any errors you may have made and to see how to avoid them in future. Therefore, we are asking you to reconsider the entries on your tax return.
The letter then goes on to describe the next actions required before a penalty warning section at the end.
The address shown in the top right hand corner is Indv and Small Business Compliance, Campaigns and Projects, BP3301 Warkworth House, Benton Park View, S1250, Newcastle Upon Tyne NE98 1ZZ.
If you have received one of these letters, then let your accountant know as soon as possible.
Alternatively one of my team, James Cordiner, is aware of the issues involved and can be contacted on email@example.com
Author: Guy Smith, Tax Investigations Manager