HMRC cancels ‘nudge’ campaign for non-doms

HM REVENUE & CUSTOMS has cancelled a campaign designed to educate non-UK domiciled (non-dom) individuals about making remittances following concerns from an accountancy body, reports Accountancy Age‘s sister publication IFAonline.

Letters from HMRC were due to be sent out to non-doms who were taxed on remittances for 2011/12 after research showed some taxpayers may not understand fully what a remittance is and, as a result, were inaccurately completing their tax return.

However, HMRC decided to suspend issuing the letters after the Institute of Chartered Accountants in England and Wales (ICAEW) said it was concerned a factsheet due to be sent out alongside them was “misleading”.

HMRC’s explanation relating to buying assets abroad and returning them to the UK failed to take into account all circumstances, the ICAEW said.

The letters were due to be part of HMRC’s ‘nudge’ campaign, which involves writing to taxpayers to inform them about certain issues, such as tax avoidance schemes.

Nimesh Shah, a senior tax manager at London chartered accountants Blick Rothenberg, said: “Given the technically complex nature of subject, it would have been sensible and more effective for HMRC to channel their communication via the taxpayer’s authorised agent rather than HMRC writing directly to the individual.”

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