Key takeaways

  • HMRC is writing to people listed as persons with significant control (PSCs) of a company, asking them to make sure their 2025/26 Self Assessment return is correct.
  • The letter is not a formal compliance check, ICAEW reported on 19 October 2026.
  • Errors found later on the issues in the letter will be treated as prompted disclosures, which carry higher minimum penalties.
  • Recipients should file a correct 2025/26 return and fix any errors in earlier years by 31 January 2027.
  • The dedicated email address in the letter can be used until 27 November 2026.
  • A careless error carries a minimum penalty of 0% if unprompted but 15% if prompted, from HMRC's Compliance Handbook at CH82470.
  • Examples HMRC gives include the company paying personal costs, use of company assets, loans from the company and selling shares.

HMRC is writing to people recorded as having significant control of a company, asking them to check that their 2025/26 Self Assessment return includes all their income and gains from the company. The letter is a prompt, not an investigation. But if HMRC later finds an error on the points it raises, any disclosure you make will count as prompted, which means a higher minimum penalty.

What are the HMRC letters to PSCs?

They are “one to many” letters sent to individuals identified as persons with significant control (PSCs) of a company. ICAEW reported the campaign on 19 October 2026. HMRC says the letter is not a formal compliance check.

The letter explains how being a PSC can give rise to taxable income or gains, and gives HMRC contact details for questions. It includes a dedicated email address that can be used up to 27 November 2026.

Who is a person with significant control?

A PSC is someone who controls a company in one of the ways set out by Companies House. Its PSC guidance, updated on 30 July 2026, lists these conditions:

  • holding more than 25% of the shares
  • holding more than 25% of the voting rights
  • having the right to appoint or remove a majority of the directors
  • having the right to exercise, or actually exercising, significant influence or control

Most owner-managers of small companies meet at least one condition, and their PSC details are on the public register at Companies House. PSCs must also verify their identity with Companies House; see PSC identity verification.

What income does the letter mention?

HMRC lists situations where a PSC may have income or gains to report. According to ICAEW, these are where:

  • the company meets your personal costs
  • you use company assets
  • assets move between you and the company
  • you receive a loan from the company
  • you take up an option to buy shares in the company
  • you sell shares in the company

Each one can create a tax charge, for example as a benefit, as income, or as a capital gain. The letter does not say HMRC has found an error in your return.

What does HMRC ask you to do?

HMRC asks you to make sure your returns are right by 31 January 2027. What you do depends on the tax year.

Tax yearWhat to doDeadline
2025/26File a complete return31 January 2027
2024/25Amend the return already filed31 January 2027
2023/24 and earlierDisclose through HMRC’s digital disclosure service31 January 2027

GOV.UK confirms you can correct a return within 12 months of the Self Assessment deadline, which for 2024/25 is usually 31 January 2027. For older years, HMRC’s digital disclosure service lets individuals and agents tell HMRC about undeclared income or gains.

Why does a prompted disclosure matter?

The penalty range is higher once HMRC has prompted you. HMRC’s Compliance Handbook at CH82420 says a disclosure is unprompted only if you had no reason to believe HMRC had discovered, or was about to discover, the error. ICAEW reports HMRC as saying that, if it later finds an error related to the letter, it will treat your disclosure as prompted.

The minimum penalties at CH82470 are:

Type of errorUnprompted minimumPrompted minimum
Careless0%15%
Deliberate20%35%
Deliberate and concealed30%50%

The maximums are 30%, 70% and 100% of the extra tax in both cases. Higher penalties can apply to offshore matters. Late payment interest is charged on top; see HMRC late payment interest.

Is the letter genuine?

The letter is a real HMRC campaign, reported by ICAEW. It does not appear on HMRC’s list of genuine contact using more than one channel, so treat any text or email that claims to follow up on it with care. HMRC will not ask for bank details by text; see how to spot HMRC scams.

Which applies to you?

  • If your returns already include everything listed, you do not need to take action, though keep a note that you checked.
  • If your 2025/26 return is not filed yet, include all company-related income and gains before 31 January 2027.
  • If you find an error in 2024/25, amend that return online by 31 January 2027.
  • If you find an error in 2023/24 or earlier, use the digital disclosure service.
  • If you are unsure, speak to an accountant before you contact HMRC.

What advisers should do

  1. Ask PSC clients whether they have received the letter, because agents may not get a copy.
  2. Review director’s loan accounts, benefits in kind, asset transfers and share transactions for 2025/26.
  3. Check the same items for 2024/25 and earlier years.
  4. Correct any errors before 31 January 2027 and keep a file note of the review.
  5. Compare the letter’s topics with our guide to Self Assessment for directors.

Frequently asked questions

Is the HMRC letter to PSCs a compliance check?

No. HMRC says it is not a formal compliance check, but errors found later on the issues it raises will be treated as prompted.

Do I have to reply to the letter?

The letter asks you to review your returns rather than reply. You can use the dedicated email address in the letter until 27 November 2026 if you have questions.

What is the deadline in the PSC letter?

HMRC asks you to file a correct 2025/26 return and correct earlier years by 31 January 2027.

Who counts as a person with significant control?

Someone who holds more than 25% of a company’s shares or voting rights, can appoint or remove most directors, or has significant influence or control over the company.

What penalty applies if I find a careless error now?

If the disclosure is prompted, the minimum penalty for a careless error is 15% of the extra tax and the maximum is 30%.

Sources

Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.