Introduction
Some landlords receive an HMRC nudge letter and decide to ignore it.
There’s no deadline.
No demand for figures.
No immediate threat.
So it’s easy to assume that ignoring the letter is harmless.
In reality, choosing not to respond often creates bigger problems later — especially once HMRC decide to revisit the position.
🎥 Prefer to watch instead of read? I’ve also recorded a video explaining what typically happens when landlords ignore HMRC nudge letters and why problems often surface much later. Video is live Sunday
You can continue reading the full written guide below.
Why HMRC Send Nudge Letters in the First Place
HMRC do not send nudge letters randomly.
They are issued when HMRC’s data suggests:
- rental income may exist
- income may not have been fully reported
- there is a mismatch between records
A nudge letter is HMRC’s way of signalling awareness — not uncertainty.
Ignoring it does not remove you from HMRC’s view.
What HMRC Do When You Don’t Reply
If you don’t respond to a nudge letter, HMRC may:
- log the lack of response
- keep your details on file for future checks
- revisit the position later using updated data
- issue further correspondence
- move directly to a compliance check
HMRC rarely chase immediately.
They often wait — and widen the scope.
For landlords who do reply, the way HMRC assess that response can be just as important — something I explain in What HMRC Do After You Reply to a Nudge Letter (Landlords).
Why Time Makes Things Worse
Delays tend to increase:
- the number of tax years reviewed
- potential penalties
- interest charged
What could have been resolved early often becomes more complex simply because time has passed.
This is why landlords are sometimes contacted years later about issues they assumed had gone away.
This is why landlords are often surprised when HMRC raise questions years later — a situation I explain in Why HMRC Contact Landlords Years Later (and What to Do).
Common Reasons Landlords Ignore Nudge Letters
Landlords often ignore letters because:
- they assume the letter doesn’t apply to them
- they believe small amounts don’t matter
- they expect HMRC to follow up if it’s serious
- they don’t know what to do next
From HMRC’s perspective, none of these are reasonable excuses.
When Silence Becomes a Compliance Issue
Once HMRC believe:
- you were aware of a potential issue, and
- chose not to act
your position weakens.
This can affect:
- penalty mitigation
- cooperation arguments
- how HMRC view your behaviour
Silence is rarely neutral in compliance matters.
This is particularly relevant where landlords never registered for Self Assessment because they assumed no response meant no issue — something I cover in I Never Registered for Self Assessment – What Happens If HMRC Find Out?.
What to Do If You’ve Ignored a Letter
If you’ve ignored an HMRC nudge letter — even months or years ago — the worst thing to do is panic.
Equally, it’s unhelpful to:
- guess figures
- rush a response
- wait for the next letter
The correct approach is to:
- establish what income exists
- identify which years are affected
- understand HMRC’s likely concerns
- act in a controlled way
Final Thought
Ignoring a nudge letter doesn’t make the issue disappear.
In many cases, it simply delays — and enlarges — the problem.
If you’d like professional help reviewing your position, you can book a paid diagnostic consultation to understand your next steps.