HMRC and influencers: letters, checks and platform data

Nudge letters are a standard HMRC tool, sent in batches to groups of people whose data suggests they might have missed or under-reported income, based on information HMRC already holds rather than any individual suspicion.

Since digital platforms began reporting seller and creator earnings under new international reporting rules, HMRC receives regular data from marketplaces, content platforms and payment providers, which it matches against submitted tax returns.

Receiving a letter does not mean you have done anything wrong. Many recipients have already declared their income correctly and simply need to confirm this, sometimes via a short form enclosed with the letter.

The letter will usually explain the tax years in question and give a response deadline, often 30 days, though this can vary. Missing the deadline does not stop you responding, but it can affect how HMRC views your case.

Before responding, reconcile your records. Pull payout statements from every platform you earn from, cross-reference them against your bank statements, and compare the totals to what you declared on any tax returns for those years.

If everything reconciles and matches your returns, you can typically respond confirming this, ideally in writing, and keep a copy for your own records in case of any future query.

If you find a gap — income that was not reported, or a year where you should have registered for Self Assessment but did not — a voluntary disclosure is usually the right route. This is a formal process for telling HMRC what happened and what you now owe.

Penalties for undisclosed income are calculated based on behaviour: a genuine, reasonable mistake attracts a lower penalty than carelessness, and deliberate concealment is treated far more seriously. Coming forward voluntarily, before HMRC opens a formal enquiry, generally results in the most favourable outcome.

Interest is charged on any tax paid late regardless of the reason, so the sooner a disclosure is made and any tax paid, the less interest accrues.

If you are genuinely unsure whether you have anything to disclose, it is worth getting your records checked properly rather than guessing — either outcome (confirming you are compliant, or making an accurate disclosure) puts things on a clear, documented footing.

Source: Income Tax rates and allowances (gov.uk) · Self Assessment (gov.uk)