HMRC sending letters to hundreds of households who earn greater than £23,000 | UK | News | EUROtoday

His Majesty’s Revenue and Customs (HMRC) is sending sudden ‘P800’ letters to individuals incomes between £23,000 and £52,000-a-year. The letters are being despatched out now that the tax yr has completed. You could obtain a letter if HMRC believes you owe cash. If you realise that you have not paid sufficient tax due to an incorrect tax code, you will be required to repay what you owe.

To keep away from a bigger invoice later down the road, it is essential to deal with any underpayments. If the underpayment wasn’t your error, you’ll be able to request to have the tax written off by requesting an “Extra Statutory Concession” or an A19 from HMRC. However, success is not assured.

Money Saving Expert, based by monetary guru Martin Lewis, mentioned: “In most cases, you’ll have to pay it back – generally HMRC can only go back four tax years, but this extends to six years if you acted carelessly and 20 years if you acted deliberately.

“How you go about paying what you owe depends upon the quantities concerned and the way HMRC has dealt together with your case – although it is all the time essential to examine you agree with HMRC about how a lot tax you have underpaid.”

“The official line from HMRC is that it’s every particular person’s accountability to examine they’re on the fitting tax code.

“However, if your code was wrong there are some situations where you might not have to pay the tax bill.”

The recommendation continued: “Using an A19 – a little-known clause that lurks deep in HMRC’s complex book of rules – ISN’T guaranteed, and in fact it’s far from likely to work. But there is a possibility, so it may be worth giving it a go.”

However, for the A19 to work, the underpayment should have been remodeled 12 months in the past, the monetary specialists cautioned.