The last of the famous international playboys (and / or playgirls)?

Introduction

You know I like to crowbar a song or artist into a tax article. It’s simply the only way I can get anyone to accidentally click through.

They are tax articles after all.

If I manage to use one I heard on the radio the same day I give myself a bonus gold sticker for this advanced sophistry.

Anyway, back to the tax.

Latest nudge letter

We are told that HMRC will soon be sending One-to-Many letters, commonly known as nudge letters, to individuals who claimed to be non-UK resident in their 2021/22 tax returns.

There is a copy of the agent and taxpayer letters on the Chartered Institute of Tax website.

However, my own view is that this is pretty distasteful.

I can see that there is a place for nudge letters in some quarters.

For those where data shows there is a non-UK bank account held which is not appearing on a tax return. Where there is evidence a landlord is letting property but their appears to be no rental profits. Or a property on a very expensive street is held by a company… but there is no ATED return.

However, here, there is no suggestion that the recipients of this letter are being filtered and only being sent where further particular risk of non-compliance has been identified.

I think it is lost on many at HMRC how stressful receiving a letter like this is to most taxpayers.

This is particularly the case as the Statutory Residence Test is hardly a simple test.

Indeed, by simply targeting anyone who has claimed to be non-resident it is perhaps a tacit endorsement that the rules are too complex.

So, even for those who have taken advice, it is likely to set a hare racing.

It is a dangerous and lazy approach, where the prospect of maximum rewards from minimal effort will be all that has been considered.

It is a scattergun approach that is indicative of a failing organisation.

Indeed, the fact that a worried receiving this mail-merge letter from HMRC would probably not be able to speak to HMRC on the phone following the pulling of their helpline probably says it all.

Tax border control

However, it perhaps is confirmation that, without any change to the residence or domicile rules, HMRC will perhaps look to patrol the UK’s tax borders with more interest.

This can perhaps be seen from cases such as Strachan, Shah and HMRC v A Taxpayer – cases which I looked at in my article The United Kingdom: You’ll Never Leave!

Conclusion

So, does all or any of this mean the end for those playdudes?

Well, if you’re a taxpayer who gets one of these letters, or you are an agent and your client receives one, and you feel you have taken the proper steps to lose your UK residency, then don’t panic.

Take a deep breath. Perhaps double check your position.

There’s a very good chance You are (not) the Quarry…

If you have any queries about this article, then please get in touch.