HMRC's Wealthy Team are sending a one-to-many letter to individuals whom HMRC believe should have paid a remittance basis charge in 2022-23.
This campaign seems more targeted than others as fewer than 100 taxpayers are being contacted.
There are different letters for those who have been resident for seven out of nine years, as opposed to those resident for 12 of 14 years. The letters outline the need for amendments to their Returns and advise the £30,000 or £60,000 charge respectively is due, or recommend taxpayers move to the arising basis within 60 days of the letter.
The letters both advise that if you're satisfied you don't meet the criteria to be a long-term resident you need to take no further action. Failure to correct errors could be met with prompted disclosure Penalties on top of additional tax and interest.
Useful guides on this topic
Remittance basis (overseas income)
What is the remittance basis? Who can claim it and when? What are the advantages of claiming the remittance basis and how much is the remittance basis charge?
Remittances: what is a remittance for the remittance basis rules?
What is a remittance in terms of the remittance basis of taxation, with practical examples. What are the remittance matching rules? What is clean capital?
Register for Self Assessment
How to register for Self Assessment. If you need to file a Self Assessment tax return and you have not previously registered for tax and you also need to pay your Income Tax liability (both of which should be done by 31 January), you need to register for Self Assessment and obtain your own Unique Tax Reference code (UTR).
Penalties: SA late filing, payment, notification & error
Self Assessment (SA) tax penalties: what penalties are due for outstanding tax returns? What penalties are due for late payment? Are there special rules for delays affecting victims of the Post Office Horizon scandal and due to Covid-19?
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