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Tax · United Kingdom

Letter about money or assets abroad (HMRC 'nudge letter') — what HMRC knows and what it asks

A 'nudge letter' says HMRC has information suggesting you may have overseas income or gains that were not declared for UK tax. It is not an accusation or a formal enquiry: it asks you to review your tax affairs and either confirm they are correct or make a disclosure.

How serious: needs actionAlso called: Nudge letter, One-to-many letter, Offshore income letter, Worldwide income letter

The letter says HMRC has information suggesting you may have received overseas income or gains — foreign accounts, rental income, dividends, crypto, pensions — that may not have been declared for UK tax. HMRC gets this data automatically from other countries under exchange-of-information agreements.

It is not an accusation and not a formal enquiry. It asks you to check your tax affairs and either confirm they are correct or make a disclosure. These are also called 'one-to-many' letters because the same letter goes to many people whose data matches a pattern.

Foreign residents living in the UK receive these often, simply because their home-country accounts are reported to HMRC. Holding an account abroad is not itself the issue; the question is whether any income or gains from it should have been declared.

Who sends it

HM Revenue and Customs (HMRC), the UK's tax authority. These letters come from its offshore and risk teams, based on data received from foreign banks and tax authorities.

An HMRC letter referring to 'money or assets abroad', overseas income or gains, and inviting you to check whether you need to make a disclosure. It typically mentions the Worldwide Disclosure Facility and asks for a reply by a stated date. It often encloses a certificate or response form.

The deadline

No statutory deadline for the letter itself — it asks for a reply by the date printed on it. If you disclose: 'Once you have notified us of your intention to make a disclosure, you'll have 90 days to gather the information you need to fill in your disclosure.'

There is no statutory deadline for the letter itself — it asks for a reply by the date printed on it. If you decide to disclose: 'Once you have notified us of your intention to make a disclosure, you'll have 90 days to gather the information you need to fill in your disclosure.' The 90 days run from your notification to HMRC.

If you do nothing

Ignoring the letter carries no automatic penalty, but HMRC already holds the underlying overseas data. If undeclared liabilities surface later, HMRC warns: 'If you fail to make a complete or accurate disclosure or refuse to send in more information, we may apply a higher penalty than we would if you had provided the information.'

How it escalates

  1. 01Advisers report that HMRC follows up and escalates to a formal compliance check or enquiry into your returns.
  2. 02HMRC can raise discovery assessments for the tax it believes is due, with penalties calculated on the basis that the disclosure was prompted, not voluntary.
  3. 03If offshore non-compliance is established, penalties are higher than for voluntary disclosure and, per gov.uk, civil or criminal investigation is possible.

Your options, procedurally

  • Your UK tax position for the years in question (residence, remittance basis, foreign income) can be reviewed before responding.
  • If a disclosure is needed: registration for the Worldwide Disclosure Facility, followed by the full disclosure within 90 days of notifying HMRC.
  • If nothing is owed: a reply by the stated date confirming your affairs are in order (professional advice is commonly used before signing any enclosed certificate).
  • A tax adviser or agent can be appointed to respond on your behalf.

How to respond

Response types

  • Confirm receiptReply to the letter (response form / 'certificate of tax position' enclosed with the letter)Form: The response form or certificate the letter encloses, where one is enclosed; otherwise a plain letter
  • Ask for clarificationNotification and disclosure under the Worldwide Disclosure Facility (Digital Disclosure Service)Form: HMRC Digital Disclosure Service (DDS) - online notification followed by the online disclosure form
  • Ask for more timeRequest for additional time to complete a Worldwide Disclosure Facility disclosure

Where and how

  • Digital Disclosure Service - notify and disclose (Worldwide Disclosure Facility)
  • Post (first class / ordinary mail)
  • Royal Mail Signed For / Special Delivery Guaranteed
  • Email
  • Telephone

What makes it count

Nothing here is filed in a legal sense, so the general UK rule applies: a posted reply counts when HMRC receives it, and the DDS records its own submission timestamp for the notification and for the disclosure. Post the reply early enough to arrive by the letter's reply-by date and keep proof of posting; keep the DDS confirmation and the DRN letter, because the 90-day clock is measured from HMRC's acknowledgement of the notification and the DRN is the only reference that ties later correspondence to the disclosure.

Common questions

Am I being accused of something?

No. The letter is not an accusation or a formal enquiry. It says HMRC holds data that may point to overseas income and asks you to check.

How does HMRC know about my foreign account?

Foreign banks and tax authorities report account data to HMRC automatically under exchange-of-information agreements.

Is there a legal deadline?

Not for the letter itself — it asks for a reply by the printed date. Once you tell HMRC you intend to disclose, you have 90 days to submit the disclosure.

What if I owe nothing?

The letter can be answered by the stated date confirming your affairs are in order. Professional advice is commonly used before signing any enclosed certificate.

Sources

Facts verified against the sources below on 28 August 2026.