Taxpayers beware! HMRC is ramping up its checks on two key fronts, focusing on undeclared dividend income and capital gains from share disposals.
Dividend Income
Company owners are receiving letters from HMRC if the reported profits don't match the movement in reserves. This might indicate undeclared dividends paid to shareholders.
Even if you haven't received dividends, you must contact HMRC within 30 days of receipt of the letter to avoid a compliance check.
Share Disposals
If you've sold shares and haven't reported them on your tax return, HMRC might send you a letter. They are identifying discrepancies by comparing information they hold on share disposals with tax return data.
You have 60 days to amend your return if necessary. If no capital gains tax is due, you must explain this to HMRC in writing.
