Brits told to look out for HMRC letters as they may need to pay
HMRC is set to send out 1.4 million letters in the coming months to UK households who owe tax while explaining what they need to do
HMRC will send out 1.4 million letters in the upcoming months to UK households that have tax dues. If you're liable to pay tax on your income for the 2024/25 tax year, you might be on the receiving end of a Simple Assessment letter.
Upon getting this letter, you'll be guided to visit GOV.UK for further details and to clear any pending tax. This mainly impacts people who haven't been taxed through Pay As You Earn (PAYE) or self-assessment.
Although, you might also owe HMRC money if you:
- Didn't pay enough tax
- Need to pay tax on interest on savings or dividends
- Need to pay tax on pension income
- Received more tax-free allowances than you were entitled to
- Have a second income you haven’t paid tax on
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The payment deadline is set for January 31, 2026, unless stated otherwise in the letter. This comes on the heels of a leading broadband provider's introduction of a new £60 charge and a deadline for action.
Payments for Simple Assessment can be made either in full or in instalments before the deadline, via the HMRC app, online through GOV.UK, by bank transfer or cheque. Simple Assessment letters are automatically generated and dispatched when HMRC gets information from employers, the Department for Work and Pensions, customers themselves, and banks and building societies.
If you suspect a mistake, you should get in touch with HMRC within 60 days to raise a query. HMRC has also started sending around four million P800 letters to individuals who have overpaid their tax, reports the Mirror.
This could impact employees paid through PAYE and pensioners who have overpaid. There are various reasons why people end up overpaying tax - the most common being assigned the incorrect tax code.
The most common tax code for the current tax year is 1257L, which applies to individuals with a single job or pension. This allows you to earn up to £12,570 within one tax year before being subject to taxation, as this is the current personal allowance.
Your tax code can be found on your latest payslip, on your P45 if you've recently left a job, or on GOV.UK if you have a Government Gateway ID. If your tax code has been incorrect for a while, you may claim back up to four additional years.
HMRC may refund beyond four tax years under certain conditions - for example, if it was their mistake that resulted in your overpayment of tax. However, if you've underpaid tax due to an incorrect tax code, you will be required to repay this amount.
