Forgive me if someone else has recently posted this same question and I have missed it.
Subsequent to submitting several of my client's 2020 personal tax returns HMRC have issued a standard letter informing my clients that they have no further personal tax returns to submit unless their circumstances change in the future.
These clients are typically owner-managers of small companies whose personal income comprises a low wage plus dividends, generating a small self-assessment liability on their dividend income in excess of the annual personal and dividend allowances.
These clients are mostly all on a standard PAYE code with no adjustment built into their 2020/21 codes to collect the tax that will be due on their dividend income in the absence of submitting a 2020/21 tax return, and even if their codes were to be adjusted it is unlikely the correct amount of tax will be collected in any given year as these clients tend to draw variable amounts of dividends from one year to the next.
Given the volume of clients this has affected in my small pratice, I presume this is due to a change of policy within HMRC that has affected every agent and I would be interested to know how others are approaching the problem this is going to create in terms of their client's untaxed income.