HMRC issues 1.8 million letters as Brits warned not to avoid simple task | Personal Finance | Finance

HM Revenue & Customs is issuing 1.8 million letters reminding Brits of a tax obligation. HMRC announced in late July that it would be writing to people about Simple Assessment this summer.

Simple Assessment applies when you owe income tax which can’t be automatically taken from your income, or you owe HMRC over £3,000 from a previous tax-year or have to pay tax on your State Pension. HMRC urged Brits not to ignore the letter if they receive it.

Myrtle Lloyd, HMRC’s chief customer officer, said: “If you receive a Simple Assessment letter and have tax to pay, please don’t ignore it. It is quick and easy to pay any tax owed via the HMRC app.”

The letters are known as PA302. They detail how much tax is owed and why. HMRC said they should not to be confused with Self Assessment.

People might receive a letter if they owe tax which HMRC cannot collect automatically. This might be tax owed on savings or dividends, a second income which has not been taxed already or tax due on pension income.

It can also apply if you received more tax-free allowance than you were entitled to and when tax can’t be collected through a tax code.

HMRC said it will be sending about 1.8 million letters and recipients should check the figures in their letter against their own records.

Any tax owed must be paid by January 31 next year unless a different date is shown on the letter.

A letter will show your taxable income, any income tax you have paid, the amount of tax you owe, your reference number and the deadline for payment.

Payments can be made in various ways, including through HMRC’s app, by bank transfer, cheque or over the phone.

HMRC said the letters are official and will arrive through letterboxes or appear in a person’s Personal Tax Account online.

For those who cannot pay the full amount in one go, it is possible to pay in instalments. Call HMRC on 0300 322 7835 to find out how.

The letter should also explain what happens if a person fails to pay or to call HMRC within 28 days of its receipt.

People of working age began receiving letters from June 30 and pensioners will start getting theirs from August 12. A second tranche of letters is due to be sent between October and December, relating to data on bank and building society interest.