Known as Simple Assessment Letters or Tax Calculation Letters, both letters explain if you are due a refund or need to pay more tax from the previous tax year, 2023/2024.
HMRC is writing to thousands of state pensioners and workers urging them not to ignore letters landing on doormats.
A HMRC spokesperson said: “We’re currently issuing Simple Assessment letters for the 2023/24 tax year. Customers will automatically receive one if they owe tax that cannot be collected via their tax code or are not registered Self Assessment.”
Known as Simple Assessment Letters or Tax Calculation Letters, both letters explain if you are due a refund or need to pay more tax from the previous tax year, 2023/2024.
READ MORE Warning issued to anyone who banks with Lloyds, Santander, Halifax, Barclays
You may get a Simple Assessment letter if you owe Income Tax that cannot be automatically taken out of your income, owe HMRC £3,000 or more, or have to pay tax on your State Pension.
If you think any information in the letter is wrong, you must contact HMRC within 60 days. You can find out more about your Simple Assessment tax bill, and what to do if you think your tax calculation is wrong.
If you get a Simple Assessment letter before 31 October 2024 (for the 6 April 2023 to 5 April 2024 tax year) – you must pay what you owe by 31 January 2025, or on or after 31 October 2024 (for the 6 April 2023 to 5 April 2024 or any earlier tax year) – you must pay what you owe within 3 months of the date of the letter.
You’ll need to contact HMRC. They may suggest you pay what you owe in instalments. You’ll need your National Insurance Number and your UK bank account details. You can only do this once your payment deadline has passed.
HMRC will ask you if you can pay in full, if there are other taxes you need to pay, how much money you earn, how much you usually spend each month and what savings or investments you have.
If you have savings or assets, HMRC will expect you to use these to reduce your debt as much as possible.