Thousands of Britons have been left stunned after receiving unexpected letters from HM Revenue & Customs (HMRC) regarding potential tax underpayments. The notices, which have been sent out in recent weeks, urge recipients to review their tax records and take action if necessary.
Why Are These Letters Being Sent?
HMRC has identified discrepancies in tax records for the 2022-23 financial year, affecting employees who may have underpaid due to incorrect tax codes or employer reporting errors. The letters explain that individuals could owe additional tax or, in some cases, be due a refund.
What Should You Do If You Receive a Letter?
- Don’t panic: The letter may simply require verification of your details.
- Check your tax records: Log in to your HMRC online account to review your income and tax payments.
- Respond promptly: If you believe there’s an error, contact HMRC immediately to resolve the issue.
- Seek advice: If unsure, consult a tax professional to avoid penalties.
Could You Be Due a Refund?
While many letters highlight underpayments, some taxpayers may actually be owed money. HMRC has confirmed that refunds will be processed automatically if no further action is required.
How to Avoid Future Tax Issues
- Regularly check your tax code on payslips.
- Update HMRC promptly if your income or employment changes.
- Review your Personal Tax Account online each year.
Experts warn that ignoring these letters could lead to fines or debt collection action, so it’s crucial to act quickly.
