HMRC targets “significant” shareholders
HMRC is sending “nudge” letters to people that have significant control of a company. Why is this happening and what should you do if you receive a letter?

Nudge letters are being increasingly used by HMRC in recent years. They are generally sent to individuals that HMRC thinks may not have fully declared their income, and are a kind of informal “prompt” to take action if needed. The latest campaign is targeting people that appear on the persons of significant control (PSC) register if either:
- less than £100,000 of income was declared on their 2020/21 tax return; or
- they are not submitting self-assessment tax returns.
Of course, it is perfectly possible to be a PSC and have little to no income from the company to declare, e.g. shareholders of a company that isn’t trading, or is making losses meaning no dividends are being paid out so receipt of a letter doesn’t necessarily mean you’ve done anything wrong. Nonetheless, the number of letters is likely to be significant. So what should you do if you receive one?
If you have not been completing self-assessment tax returns, you can check whether you need to here. If you are already within self-assessment but haven’t declared any taxable benefits received from the company, receipt of a share option or a disposal of shares, the letter should instruct you to amend your 2020/21 tax return. The deadline for doing so is 31 January 2023, but ideally you should pay any outstanding tax as soon as possible to avoid further late payment interest charges.
Related Topics
-
Capital gains tax break for job-related accommodation
You’re in the process of selling a property that you bought as your home but because of your job have never lived in. You’ve been told that you’ll have to pay tax on any gain you make, but might a special relief get you off the hook?
-
Should you revoke your 20-year-old option?
Your business has let out a building to a tenant and it is now just over 20 years since you opted to tax the property with HMRC. Should you revoke it so that your tenant no longer needs to pay VAT?
-
Chip shop owner fined £40k for hiring illegal worker
A Surrey fish and chip shop owner has been left in shock after being fined £40,000 for allegedly employing someone who didn’t have the right to work in the UK, even though he conducted a right to work check. Where did this employer go wrong and what can you learn from it?