HMRC warns 560,000 taxpayers 'don't ignore letter' if they get one this week
Hundreds of thousands of Britons will receive an important tax letter from HMRC this month.
HMRC is urging Britons not to ignore a letter if they receive one from the tax body this month.
Around 560,000 individuals, including many pensioners, will be receiving Simple Assessment tax calculation letters, known as PA302 letters.
These letters outline the taxpayer's income for the 2023 to 2024 tax year, detail any income tax already paid, and specify any outstanding tax liabilities.
This is a routine letter and HM Revenue and Customs (HMRC) issues them every year.
They are sent to people who need to pay tax on income because their income has not been taxed through PAYE (Pay As You Earn) or Self Assessment.
This means if someone’s state pension or other taxable income, such as savings, investments, or dividends, exceeds their personal allowance, they will need to pay tax on this.
However, it’s important that the letter is not ignored if people need to act, or they may risk a penalty.
HMRC said: “The amount of tax owed can vary based on an individual’s circumstances. Paying the tax calculated on the letter avoids the need for customers to register for Self Assessment and complete a tax return.”
The deadline to pay any tax owed is January 31, 2025.
Payments can be made in full, or in instalments before the deadline, on GOV.UK or through the free and secure HMRC app. A full list of payment methods, can be found on GOV.UK.
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Self-assessment tax returns
Separately, HMRC has issued a reminder for people who need to spread the cost of their 2023/24 tax bill that the deadline to make a “payment on account” falls on Wednesday, July 31.
Explaining the reminder, HMRC said: “More than 12 million people need to file a Self Assessment return for 2023/2024 tax year and pay any tax owed before January 31, 2025.
“However, to help spread out payments throughout the year, many people pay their taxes by making two payments on account.
“If the previous year’s tax bill was over £1,000, each payment is half that amount with the first payment made on January 31, and the second due on July 31.”
If there is still tax to pay after customers have made their payments on account, they will need to make a “balancing payment” by January 31, 2025.
Payments can be made securely via the HMRC app at any time of day or night.
Those new to Self Assessment will need to register to get their Unique Taxpayer Reference before they can file their tax return. Anyone unsure about whether they need to file a tax return can use the online checking tool on GOV.UK.
