HMRC currently employs around 59,000 staff and is set to hire an additional 5,000—with one clear objective:

To launch inquiries into tax affairs across the system and maximize tax collection.

For our clients, this isn’t a concern. We ensure everything is done correctly, and our inquiry defense fees are fully covered by insurance.

Recently, a significant number of nudge letters have been circulating, primarily targeting individuals involved in dog breeding and property rentals.

From what I’ve seen, most recipients of these letters did have undeclared income. This suggests that HMRC already has the data and is giving people the opportunity to come clean voluntarily.

My advice? Act now to minimize penalties and interest.

If you need help preparing a disclosure, we’ve been handling these cases more frequently—especially since HMRC hired 3,000 additional staff in 2021/22. With another 5,000 on the way, scrutiny is only going to increase.