HMRC targets persons with significant control in latest nudge letter campaign
Corrective action may be required by 25 July 2025
HMRC has launched yet another nudge letter campaign, this time focusing on individuals listed at Companies House as Persons with Significant Control (PSCs) over companies.
Who is a person with significant control?
A PSC is broadly defined as someone who:
- directly or indirectly owns more than 25% of the shares or voting rights in the company;
- has the right to appoint or remove the majority of directors of the company; or
- can exercise significant influence over the company.
What’s the focus and what action is required?
HMRC is writing to PSCs who have filed 2023/24 tax returns, asking them to review their submissions and correct any inaccuracies by 25 July 2025. HMRC also advises that 2024/25 tax returns should fully report all sources of income and gains.
In addition, letters are being sent to PSCs who have not submitted a 2023/24 tax return, prompting them to assess whether one should have been filed. Again, the deadline for any necessary submission is 25 July 2025.
Importantly, these letters are not formal compliance checks. However, if errors are identified or a return is found to be missing, HMRC may open a compliance check later. Failure to take appropriate action by the deadline could result in higher penalties.
We are here to help
If you’ve received one of these letters - or any other nudge - and are unsure about what to do next, our specialist team is here to help. We can guide you through the review and amendment process and ensure your self assessment tax return is complete and compliant.
