HM Revenue & Customs (HMRC) is currently sending out a staggering 1.4 million letters to individuals across the UK who may owe unpaid tax. The move comes as part of a crackdown on discrepancies in tax payments, particularly affecting those on PAYE and self-assessment schemes.
Who Is Receiving These Letters?
The letters are being dispatched to taxpayers who may have underpaid due to errors in their tax codes, unreported income, or incorrect claims. HMRC has identified discrepancies through its real-time data-matching systems, which cross-reference earnings reported by employers with tax returns.
What Should You Do If You Get One?
If you receive a letter from HMRC, it’s crucial to act quickly. Here’s what you need to know:
- Check the details – Ensure the figures match your records.
- Respond promptly – Ignoring the letter could lead to penalties.
- Set up a payment plan – If you can’t pay in full, HMRC may allow instalments.
Why Is This Happening Now?
HMRC has ramped up compliance efforts following the pandemic, aiming to recover lost revenue. Experts warn that many taxpayers could be caught off guard, especially those who assumed their tax affairs were in order.
If you’re unsure about your tax status, seeking professional advice could save you from unexpected bills or fines.
