The letters are being pushed through the letterboxs of those who have either overpaid or underpaid tax for the 2023/24 tax year.
HMRC is writing to state pensioners AND workers as it moves to send out both tax calculation letters (P800 letter) and Simple Assessment letters. The letters are being pushed through the letterboxs of those who have either overpaid or underpaid tax for the 2023/24 tax year.
A Simple Assessment letter might be sent if you owe tax that can’t be automatically deducted from your income or owe HMRC more than £3,000. HMRC will generally send a Simple Assessment letter if it cannot automatically reclaim money owed. Official guidance states this can be the case for the following reasons: you have to pay tax on your State Pension or you owe HMRC more than £3,000 or you owe Income Tax that cannot be automatically taken out of your income.
This letter will contain important details you need to check such as your taxable income, any Income Tax you have already paid, and the total tax that you owe to HMRC. HMRC is also sending out P800 letters to UK households too.
READ MORE Five counties in England set to see snow before end of Saturday according to Met Office
At the end of each tax year, HMRC send customers an End of Year Tax Calculation – P800 if they have under or overpaid their taxes. This personalised letter indicates whether the recipient needs to pay more tax or is eligible for a refund, the amount involved and how the payment or refund will be made.
It also provides a more detailed breakdown of the tax calculations to help them understand how HMRC have come to the relevant conclusions and figures. In most cases, customers do not need to contact HMRC after they receive a P800. Customers are asked to contact HMRC, if there is an error.
HMRC sends out approximately 7 million P800 End of year Tax Calculation Notices annually. Earlier research indicated that the layout and content of the P800 was at times unclear and thus prone to creating confusion, leading customers to contact HMRC for reassurance purposes. HMRC redesigned the layout and content of the P800 notice to make it clearer, easier to understand, more customer friendly and, as a result, to reduce the amount of reassurance calls upon receipt.
