Publishing Details of Deliberate Tax Defaulters opening letter (PDDD1)

HMRC have provided us with the following information about revisions that have recently been made to the PDDD1 letter:

Where following an HMRC compliance check, a penalty has been charged in respect of deliberate or deliberate and concealed inaccuracies in a return or other document, the taxpayer’s details can be published (where certain other conditions have been met). Those details are included on GOV.UK for no more than 12 months from the time they are first added. Before publication, HMRC must write to the taxpayer with the details that they intend to publish. Taxpayers also have the opportunity to make representations.

Representations are the opportunity for the taxpayer to provide any reason(s) why they believe their details should not to be included on the list of deliberate defaulters. Those representation are considered by HMRC Senior Officials.

HMRC’s has rewritten the standard letter (PDDD1) it issues when setting out their intention to publish the details of the taxpayer and invites any representations why they should not do that. The letter states upfront that the intention to publish is a direct consequence of HMRC’s decision to charge a penalty for a deliberate inaccuracy. This is important as some representations HMRC receive are made on the grounds that the tax and penalty have already been paid. The letter also signposts access to extra support if that is needed as well as explaining what a taxpayer needs to do if they want to make representations or have any other queries about the process.

Overall the new letter is intended to be clearer, and more concise and accessible.  

Below are two exemplar versions of a new standard template which reflect the changes HMRC have made.

• Scenario 1: PDD1 sent to an individual where Factsheet FS13 has previously been issued and there is no acting representative.
• Scenario 2: PDD1 sent to a company where Factsheet FS13 is included as part of our letter and there is an acting representative.

The names and dates in the letters are for illustrative purposes.