HMRC is sending new tax letters to some UK households from next month, with officials urging people not to ignore them. The letters are issued to people who owe Income Tax that cannot be collected through their tax code, or those who owe £3,000 or more in tax. Recipients may also include individuals who need to pay tax on their State Pension or have untaxed income such as savings interest or dividends.
Second tax letters and overpayment fears
Around 1.8 million Simple Assessment letters are set to be sent this year. Some people will receive a second tax letter from October onwards, and HMRC has warned people to read them carefully to avoid paying twice — but there are fears 'thousands' could end up paying too much.
The tax authority has confirmed that some savers will be sent a second demand that includes tax owed on savings interest, plus the amount from the first letter, even if this has already been paid.
Official advice on payments
Myrtle Lloyd, HMRC's Chief Customer Officer, said as the drive was first launched: "If you receive a Simple Assessment letter and have tax to pay, please don't ignore it. It is quick and easy to pay any tax owed via the HMRC app."
An HMRC spokesman added: "To prevent customers from overpaying, our letters now make clear that customers don't need to pay the total tax shown if they've already made a payment towards a previous simple assessment bill from earlier in the year."