Received a Letter from HMRC? Here’s What to Do Next
Receiving an unexpected letter from HMRC can be stressful, particularly when you are not sure why it has been sent or what you are expected to do.
The most important thing is not to ignore it.
HMRC letters can relate to tax returns, payments, penalties, missing information, changes to your tax position or requests for additional documents.
Taking a few simple steps can help you understand the situation and respond correctly.
Read the Letter Carefully
Start by reading the entire letter rather than focusing only on the amount, warning or headline.
Look for:
- Why HMRC has contacted you
- What information they are requesting
- Whether you need to make a payment
- Any reference numbers
- The tax year involved
- The deadline for responding
Some HMRC letters are simply requesting additional information, while others may require action within a specific period.
Check That the Information Is Correct
Do not automatically assume that everything in the letter is correct.
Check details such as:
- Your name and address
- National Insurance or tax reference details
- The tax year mentioned
- Income figures
- Payments already made
- Any penalties or amounts HMRC says are outstanding
If something does not look right, make a note of it before responding.
Pay Attention to the Deadline
Many HMRC letters include a date by which you must reply.
Missing this deadline can make matters more difficult and, depending on the situation, may result in additional penalties or further action.
If you need more time or do not understand what HMRC is asking for, it is better to deal with the issue early rather than leave it until the deadline has passed.
Gather Your Documents
Before responding, collect any documents that may be relevant to the issue.
These could include:
- Payslips
- P60 or P45 documents
- Bank statements
- Invoices
- Expense records
- Previous tax returns
- Previous HMRC letters
- Proof of payments
Keeping everything together will make it much easier to review the situation and provide accurate information.
Keep Copies of Everything
Always keep a copy of the HMRC letter and anything you send in response.
If you speak with HMRC by telephone, it can also be helpful to make a note of:
- The date of the call
- Who you spoke to
- What was discussed
- Any reference number provided
- What you were told to do next
Good records can be extremely useful if the issue continues or needs to be reviewed later.
Do Not Guess When Responding
If you are unsure about a figure, document or question, avoid guessing.
Providing incorrect information may create further problems.
It is better to check the information first or seek assistance if you are unsure how to respond.
Can an HMRC Decision Be Challenged?
In some situations, you may be able to challenge an HMRC decision or penalty.
Whether this is possible will depend on the type of decision, the circumstances and the applicable deadline.
This is why it is important to review HMRC correspondence as soon as you receive it.
When Should You Ask for Help?
You may want professional support if:
- You do not understand the letter
- HMRC is requesting information you are unsure how to provide
- You believe HMRC has made a mistake
- You have received a penalty
- You are worried about missing a deadline
- The issue relates to several tax years
- You are unsure how to prepare your response
Getting support early can often make the process much easier.
Need Help With an HMRC Letter?
At Help Always Here, we can help you understand HMRC correspondence, organize the information required and prepare an appropriate response.
If you have received a letter from HMRC and are unsure what to do next, contact us and explain your situation.
We will help you understand the next steps.