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29 September 2015 / Adam Craggs
Issue: 4520 / Categories: Forum & Feedback

Correspondence from readers on topical subjects.

Adam Craggs questions the increasing use of “nudge” letters which are sent by HMRC direct to taxpayers. Is this a sinister development?

As many practitioners will be aware HMRC recently started sending out what it terms “nudge” letters. These are being sent directly to taxpayers who are in dispute with the department in the hope that these matters can be settled and the appeals will be abandoned.
 
The government’s Behavioural Insights Team from which this tactic emanates was set up in 2010 with hopes that it could influence behaviour. HMRC subsequently set up its own “nudge” unit.
 
The policy is controversial and involves the department issuing these carefully worded letters using behavioural psychology techniques to subconsciously nudge the recipients towards settlement of their disputes. It would appear that the tactic is designed to...

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