HMRC Nudge Letters Explained: What They Really Mean & What To Do

Received an HMRC nudge letter?

Here’s what it really means and what you should do next. Most people misunderstand HMRC nudge letters. They assume it’s either “nothing to worry about” or the start of a full HMRC investigation.

Both assumptions are wrong.

In this video, I explain:
•⁠ ⁠What HMRC nudge letters actually are
•⁠ ⁠Why you’re seeing more of them now
•⁠ ⁠How HMRC decides who receives one
•⁠ ⁠And how your response determines whether this ends quietly or escalates into a formal compliance check

I also walk you through:
•⁠ ⁠Where HMRC’s confidence comes from before sending a nudge letter
•⁠ ⁠The risk classification process most people miss
•⁠ ⁠The common mistakes that create scope creep and wider enquiries
•⁠ ⁠How voluntary disclosure fits in — and when it helps vs when it makes things worse

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https://adl.tax/

⏱️ Timestamps

00:00 – Why most people misunderstand HMRC nudge letters
00:42 – Why HMRC is sending more nudge letters now
01:28 – What HMRC nudge letters actually are
02:18 – Where HMRC gets its confidence
03:51 – The risk classification most people miss
04:58 – What to do first (step-by-step)
06:55 – The Certificate of Tax Position
07:55 – How to make a disclosure
08:43 – Why this matters more after the Budget

📌 If something in this video feels uncomfortably familiar, it’s usually better to get advice early — while you still have options.

Disclaimer:
The content of this video is for general information only and does not constitute tax or legal advice. Individual circumstances vary, and professional advice should be sought before taking action.
Received a HMRC nudge letter?