HMRC One to Many letter - Digital Platform Population Non-Filers

HMRC’s Wealthy External Forum has issued a briefing to forum members about One to Many letters being issued to individuals who have been identified as having an online presence which is likely to generate income that should be declared via a Self Assessment tax return, and who have notified HMRC of their intent to file but have yet to submit their 2020/21 tax return.

As this is their first time submitting a return HMRC are writing to these individuals in advance of the 2020/21 filing deadline to remind them of what they need to do to submit a return and how they should declare any income from digital sources.

If the individual has an agent a copy of this letter will also be sent to their agent. 

It is intended that the letters will be sent in November 2021 but due to various external factors outside of HMRC’s control, the dates that letters are to be issued may be subject to change.

Copies of the letter being sent to taxpayers and the letter to their agents are provided below.

Briefing
Letter to agents
Letter to taxpayers

Update

The letter to the taxpayer states:

• If your total income from all sources, including any that has been subject to Pay As You Earn, is less than £ 12,500 you do not need to submit a Self assessment return.

However, this is inconsistent with HMRC’s advice on the trading allowance and with HMRC’s online tool – ‘Check if you need to send a Self Assessment tax return’ – which advises that you do need to complete and submit a Self assessment tax return if your income from self employment is over £1,000. 

HMRC have advised us their helpline is aware of the error and anyone who has received a letter will not be penalised because of HMRC’s mistake.