HM Income and Customs (HMRC) will ship 1.4 million letters within the coming months to alert UK taxpayers about unpaid revenue tax as a part of its annual compliance train.
The notices, generally known as Easy Evaluation letters, are issued to people whose revenue has not been totally taxed by means of Pay As You Earn (PAYE) or Self Evaluation.
HMRC mentioned the assessments cowl tax owed on revenue above the private allowance for the 2024/25 tax 12 months.
The letters will probably be despatched primarily over the summer time, though HMRC could challenge them at any time as new data is obtained.
They’re triggered when the tax authority receives knowledge from employers, banks, constructing societies, monetary establishments, or the Division for Work and Pensions indicating that extra tax is due.
Who will obtain a letter?
Recipients usually embrace folks with:
- unpaid tax on curiosity from financial savings or dividends,
- revenue from second jobs,
- tax-free allowances they weren’t entitled to, or
- pension funds the place the right amount of tax has not been deducted.
The notices additionally alert people who’ve paid too little tax in error.
Taxpayers have till 31 January 2026 to pay the quantity owed in full or to agree an instalment plan with HMRC. Funds might be made on-line by means of GOV.UK, by financial institution switch, or by cheque.
Those that consider their discover is wrong can question it inside 60 days of receipt. If HMRC accepts the question, a revised letter will probably be issued. If not, the unique evaluation stands, however people have the suitable to attraction on-line inside 30 days.
Using Easy Evaluation letters has turn into an everyday function of HMRC’s compliance technique, permitting the authority to gather tax with out requiring people to finish a full Self Evaluation return.
The system was launched to simplify the gathering of tax from individuals who owe small quantities exterior PAYE.
Whereas the letters are routine, HMRC emphasises that taxpayers ought to overview them fastidiously to keep away from penalties or curiosity on unpaid quantities. Failure to behave might result in enforcement measures.
Most letters are despatched throughout July and August, aligning with the top of the tax 12 months knowledge cycle, however HMRC has acknowledged that they could proceed issuing notices into the autumn relying on when data is processed.
