HMRC One to Many Agent Letter – Discrepancies in Clients’ Self Assessment Tax Returns for the year ended 5 April 2023

HMRC have advised us that they have recently commenced a One to Many (OTM) letter campaign directed at tax agents and relating to potential Self-Assessment discrepancies in 2022-23 tax returns affecting multiple clients. The letter sending process commenced during the week beginning 15 July 2024 and will continue over the coming weeks. A copy of the letter is provided below, together with a link to the CIOT’s newly published guidance for members who may receive one of these letters.

The letters are being sent by HMRC’s Agent Compliance Team (ACT) and are being sent to agents who have multiple clients exhibiting a P11D risk and/or P14 risk and/or High Income Child Benefit Charge (HICBC) risk with the objective of working with the agents so they can agree with their clients a voluntary amendment programme to rectify any errors made in their 2022-23 tax year self-assessment returns, as required. 

The letter explains that HMRC will contact the agent in the next few weeks when further details will be provided in the form of a list of clients highlighting the potential discrepancies (or the agent can contact HMRC before then on the telephone number or email address provided at the top of the letter). This is so HMRC and the agent can discuss the taxable benefits, PAYE details, or potential HICBC liabilities of specific clients with a view to enabling the agents to support their clients in correcting any errors as necessary or understanding any discrepancies, without the need for a formal enquiry. The letter makes it clear this is not a formal enquiry or compliance check.

The letter explains that the deadline to amend 2022-23 returns is 31 January 2025. HMRC request that once amendments have been made the agent sends them a spreadsheet via email setting the amendments out and/or explaining why an amendment has not been made. The letter states that a penalty will not be charged if a voluntary amendment is made by 31 January 2025, but that if one is not made HMRC will review each case and take the relevant enquiry action and they may also charge a penalty.

SA discrepancies OTM - Tax Agents letter

HMRC One to Many Agent Letters -  Guidance for CIOT members

Because HMRC’s OTM agent letters can cause professional and practical issues for tax agents, the CIOT has produced a note for members which provides information about these types of letters together with some guidance to help members decide the most appropriate way to respond if they receive one from HMRC – see here.