header-logo header-logo

HMRC: a nudge too far?

25 September 2015
Issue: 7669 / Categories: Legal News
printer mail-detail

Department accused of pressurising taxpayers with “nudge letters”

A tax lawyer has accused HMRC of circumventing normal dispute resolution processes by using “nudge” letters to pressurise individuals.

Adam Craggs, tax partner at RPC, claims HMRC are sending “carefully crafted” letters directly to taxpayers who dispute their tax bill, warning, for example, that they win the majority of cases that don’t settle and that the taxpayer may attract adverse publicity.

Craggs says he has replied to HMRC on behalf of clients with appeals pending at the tax tribunal to ask them not to send any more letters, and HMRC gave a “short, unsympathetic response”.

He says: “My clients find it intimidating. There is an anomaly here, in that solicitors are under a professional duty not to write directly to individuals, but HMRC officers do not have the same obligation. They’re very effective. They spook clients, who get very worried.

“Not only is this a tactic designed to pressurise taxpayers into settling their dispute, it also demonstrates just how far HMRC is prepared to

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Freeths—Ruth Clare

Freeths—Ruth Clare

National real estate team bolstered by partner hire in Manchester

Farrer & Co—Claire Gordon

Farrer & Co—Claire Gordon

Partner appointed head of family team

mfg Solicitors—Neil Harrison

mfg Solicitors—Neil Harrison

Firm strengthens agriculture and rural affairs team with partner return

NEWS
Conveyancing lawyers have enjoyed a rapid win after campaigning against UK Finance’s decision to charge for access to the Mortgage Lenders’ Handbook
The Crown Prosecution Service (CPS) has launched a recruitment drive for talented early career and more senior barristers and solicitors
Regulators differed in the clarity and consistency of their post-Mazur advice and guidance, according to an interim report by the Legal Services Board (LSB)
The Solicitors Act 1974 may still underpin legal regulation, but its age is increasingly showing. Writing in NLJ this week, Victoria Morrison-Hughes of the Association of Costs Lawyers argues that the Act is ‘out of step with modern consumer law’ and actively deters fairness
A Competition Appeal Tribunal (CAT) ruling has reopened debate on the availability of ‘user damages’ in competition claims. Writing in NLJ this week, Edward Nyman of Hausfeld explains how the CAT allowed Dr Liza Lovdahl Gormsen’s alternative damages case against Meta to proceed, rejecting arguments that such damages are barred in competition law
back-to-top-scroll