Received a One to Many letter from HMRC? What it means and how to respond

If a One to Many (OTM) letter from HM Revenue & Customs (HMRC) has landed on your desk, you might be wondering what it means.

These letters have recently been sent to private equity businesses and estate agents, but they can be issued to any organisation.

They are not accusations – but they are a signal to check your compliance.

What is a One to Many letter?

HMRC issues OTM letters to multiple companies at once, focusing on a particular compliance issue.

These letters outline:

• The compliance area HMRC is scrutinising
• What action businesses should take
• The risks of ignoring the issue

While there is no immediate penalty for receiving one, brushing it aside could open the door to deeper inquiries, fines, or, in serious cases, criminal investigations.

What should you do if you receive one?

If an OTM letter arrives, don’t panic, but don’t ignore it either. Here’s how to handle it:

• Read it thoroughly – Understand what HMRC is asking of you.
• Review your records – Check whether your business is fully compliant.
• Act promptly – If any discrepancies arise, correct them promptly. This might mean updating procedures, registering for relevant schemes, or making a voluntary disclosure to HMRC.

Even if you have not received a letter, it is wise to keep your tax and compliance processes in check.

Staying ahead of HMRC’s expectations could save you time, stress, and financial penalties down the line.

Need expert advice?

If an OTM letter has arrived and you are unsure what to do next, our team can help.

Speak to us today for expert guidance on protecting your business and staying compliant.