The Low Incomes Tax Reform Group (LITRG) have published a guide for people who receive tax repayment letters from HM Revenue and Customs (HMRC).
HMRC say that between 1.7 and 3.5 million people will get a letter (technically known as a ‘P800’) over the summer informing them they are due a tax refund for the 2010-11 tax year. The letters start going out in mid-July. A further 1.2 million people will receive a letter telling them they owe tax for that year. These letters will not start going out until September.
LITRG’s guide is available from the Group’s website via the link: http://www.litrg.org.uk/News/2011/2011-repayments
The guide includes:
- An explanation of who will be getting letters from HMRC;
- Guidance on how to check if HMRC’s calculations are accurate;
- Information on what to do if you think the calculation is wrong or incomplete, or you do not understand it;
- Information about how to claim money owed from previous tax years; and
- Examples of the letters taxpayers could write in response to receipt of a tax calculation.
Additionally, a question and answer guide on the 2011 PAYE reconciliation process is available on the website of the Chartered Institute of Taxation: http://tinyurl.com/taxqa2011
LITRG Chairman John Andrews said:
“Taxpayers receiving letters from HMRC need to check their calculations carefully – even if the letter says they are getting a refund. The calculation will only be as good as the data held on HMRC’s computer.
“Last year, LITRG helped countless taxpayers to decipher and deal with their PAYE tax calculations. Now we hope to do the same for calculations issued for the tax year which ended on 5 April 2011, starting with people who receive tax repayments.
“It is important that people contact HMRC if their refund is too big, as well as if it is too small. If HMRC repay you too much and you don’t tell them, you could be charged a penalty if they think you were careless in not spotting it.”
Notes to editors
- LITRG are keen for the guide to have the widest possible circulation and media outlets are encouraged to link to it and to reproduce extracts from it, provided these are attributed to LITRG.
- Experts from LITRG are available for interview or to provide background information. Please contact them on the numbers at the top of the page.
- The Low Incomes Tax Reform Group (LITRG) is an initiative of the Chartered Institute of Taxation (CIOT) to give a voice to the unrepresented. Since 1998 LITRG has been working to improve the policy and processes of the tax, tax credits and associated welfare systems for the benefit of those on low incomes.
Technical Team
12 July 2011
