Had a letter from HMRC?
What it might mean and what to do next

A letter from HMRC can be routine, like a tax calculation, or it can be the start of a check into your tax. Either way, the most important thing is to read it properly, note any deadline and not put it in a drawer.

First, check it’s genuine

Fraudsters copy HMRC letters, emails and texts. Before you reply or pay anything:

• check it against HMRC’s list of recent genuine letters on GOV.UK
• don’t ring a phone number printed on a letter you’re unsure about. Use the contact details on GOV.UK instead
• be wary of any request to send information to an email address that doesn’t end in hmrc.gov.uk
• remember HMRC won’t tell you about a tax rebate, or ask for personal or payment details, by text

You can forward suspicious emails to phishing@hmrc.gov.uk and suspicious texts to 60599.

Common types of letter

A tax calculation (P800). HMRC sends these between June and March after the tax year ends if you’ve paid too much or too little tax through PAYE. It tells you how you’ll get a refund or how to pay.

A Simple Assessment. This tells you that you owe tax that can’t be collected automatically through your tax code, and how to pay it.

A penalty notice. Usually for a late return or late payment. It will say what the penalty is for and how to appeal if you think it’s wrong.

A request for a return. HMRC may ask you to file a Self Assessment return, even if you didn’t expect to. If you think you don’t need to be in Self Assessment, tell HMRC straight away rather than leaving it.

A compliance check. This is HMRC checking your tax position. It’s covered below.

If it’s a compliance check

A compliance check, sometimes called a tax enquiry, is HMRC checking that you’ve paid the right tax and claimed the right reliefs. It doesn’t mean you’ve done something wrong. HMRC may ask you to:

• send information or documents
• meet them to talk about your tax affairs and records
• let them inspect your business premises, assets and records

The letter tells you what HMRC wants and by when. Reply by that date, or ask for more time before it passes, because ignoring a request can lead to penalties. You can have an accountant deal with HMRC for you.

If you disagree with a decision

You usually have 30 days from the date on the decision letter to appeal or to accept HMRC’s offer of a review. A review means a different HMRC officer looks at the decision again. If you still disagree after that, you can go to the tax tribunal.

If you miss the 30 days, you’ll need a reasonable excuse for appealing late, so don’t wait until the last week.

If the letter says you owe tax you can’t pay

Contact HMRC before the payment date. They may agree a payment plan if they think you can keep to it. Interest still runs on what’s unpaid.

What you need to do

• Check the letter is genuine using GOV.UK, not the contact details on the letter.
• Find the reference, the tax year and any deadline, and put the date in your diary.
• Work out which type of letter it is and what it’s asking for.
• Gather the records it relates to before you reply.
• Reply or appeal before the deadline, or ask for more time before it passes.
• If it’s a compliance check, consider having an accountant deal with HMRC for you.

Key dates

• The date on the letter: your deadline usually runs from here, not from when you opened it.
• 30 days from a decision letter: usual deadline to appeal or accept a review.
• The reply date in a compliance check letter: ask for more time before it passes if you need it.