04/03/2024
HMRC clamps down on undeclared dividend earnings
Starting from 4 February 2024, HMRC will be writing to company owners regarding the potential under declaration of dividend income.
The correspondence is prompted by a decrease in company reserves despite reported profits, hinting at undisclosed dividend payouts.
Recipients are urged by HMRC to acknowledge the letter by either disclosing any unreported dividend income or confirming no additional income exists. For those with undeclared income, HMRC recommends utilising their disclosure facility.
The process involves registering online, receiving a payment reference number (PRN) by post, and using the online platform to settle dues, encompassing interest and penalties, within 90 days of receiving the PRN.
If recipients assert that they have no additional income, they can communicate this to HMRC via the provided telephone number or email.
Failure to respond may lead to HMRC initiating a compliance check, potentially resulting in heightened penalties. This outreach once again reiterates the importance of prompt and accurate income reporting.
For more information on dividends, please call 023 8046 1235, or email Alan Rolfe.
;