HMRC nudge letter: what it really means

What it is

An HMRC "nudge letter" is a compliance letter sent to taxpayers whose Self Assessment returns do not match information HMRC holds from other sources. From January 2025, HMRC has been using digital platform reporting data under the UK's DAC7-style rules to spot gig workers whose declared income does not line up with what Uber, Bolt, Deliveroo and Amazon have reported. A nudge letter is not a formal enquiry. It invites you to check your return and correct it before HMRC escalates.

How it applies to gig workers

Advisers Menzies LLP and BS Associate reported in early 2026 that HMRC is contacting Uber, Bolt and private hire drivers whose platform data shows higher income than their tax returns. Menzies also reported in January 2025 that HMRC was writing to delivery drivers using data from DPD, Yodel and Evri, and warned that platform reporting for Deliveroo, Just Eat and Uber Eats would feed the same letters from January 2025 onwards. Tax-wise reported in October 2025 that Uber and Bolt drivers were receiving letters based on data from Uber, Bolt, Deliveroo and Amazon.

Worked example. An Uber driver had £42,000 turnover in 2025-26 and £8,000 of allowable expenses, giving £34,000 profit. He only put £30,000 of Uber income on his Self Assessment because he "forgot" £12,000. Uber's DAC7 report to HMRC shows the full £42,000. HMRC sends a nudge letter pointing to platform data and asking him to check the return. If he responds quickly, recalculates his tax on the full turnover and pays the extra tax plus interest, penalties are lower because he has cooperated once prompted. If he ignores the letter, HMRC can open a formal enquiry under the Taxes Management Act 1970 or raise a discovery assessment, with higher penalties and a longer look-back period (up to 20 years if HMRC argues the behaviour was deliberate).

A nudge letter is the cheap warning shot. It is not optional. Ignoring it usually makes things worse, not better. Correcting voluntarily before HMRC writes attracts lower penalties than correcting after a prompt, which still attracts lower penalties than waiting for a full enquiry. If the undeclared amount is small and a simple mistake, a quick amended return often closes it. If it spans several years or looks deliberate, get advice from a qualified tax adviser, a union-linked accountant, or TaxAid before replying.

What you should do about it

• Do not ignore the letter. Read it carefully and note the reference number and any response deadline.
• Pull your actual platform data for the years HMRC references. Download the annual summaries from each app.
• If your figures are wrong, file an amended return or write back with the corrected numbers inside the letter's deadline.
• If the gap is large or covers multiple years, get advice from TaxAid (free), a union-linked accountant, or a qualified tax adviser before responding.
• If you have undeclared income HMRC has not yet written about, correct it voluntarily before they do. Penalties are lower for unprompted disclosures.
• Keep a copy of everything you send, every email, every letter, and the dates.

Last reviewed

19 April 2026

Internal links this page emits (3-5):

• dac7 — anchor: "DAC7 platform reporting"
• hmrc sent a letter — anchor: "what if HMRC has sent you a letter"
• self assessment deadlines 2026 — anchor: "Self Assessment deadlines"
• hmrc time to pay — anchor: "HMRC Time to Pay"
• record keeping gig workers — anchor: "gig worker record-keeping"

Primary source used:

• Research/Gap/G4.3-hmrc-enforcement.md