CIOT: Low Incomes Tax Reform Group: Guide to underpaid tax letters

CIOT: Low Incomes Tax Reform Group: Guide to underpaid tax letters

CIOT: Low Incomes Tax Reform Group: Guide to underpaid tax letters

The Low Incomes Tax Reform Group (LITRG) have issued a guide on what people should do if they receive a tax calculation letter from HM Revenue and Customs.

The 14 page guide is available from the LITRG website via the link: http://tinyurl.com/taxletters

The guide includes:
. Step by step guidance for people who are told they have underpaid tax
. An explanation of the circumstances in which people can challenge HMRC
. An annotated version of the ‘P800 Notes’ (the notice people will be sent telling them of their recalculated tax)
. Examples of the letters taxpayers could write in response to receipt of a tax calculation

LITRG Chairman John Andrews said:
“Taxpayers receiving tax calculations from HMRC are in need of help – particularly if these show that they owe money to HMRC and they cannot afford to pay for a tax adviser. We do not feel that HMRC have done all they could to help the vulnerable and the uninitiated – something which we hope will be improved before the large bulk of the six million calculations are sent out.

“So to fill the gap, we are providing extra guidance. The position is complicated, but we have tried to cover most circumstances.

“Whilst it is difficult to generalise as an almost infinite variety of circumstances could apply, our aim is to provide help which people can then fit to their own situation.

“We will be refining our advice as further evidence of the nature of problems occurring becomes apparent. In the meantime, we hope that HMRC can improve their guidance, particularly for people without access to the internet. We also hope that in areas of doubt, of which there are many, they will apply a generous and sympathetic approach.”

Notes to editors

1. LITRG are keen for the guide to have the widest possible circulation and media outlets are encouraged to link to it and to reproduce extracts from it, provided these are attributed to LITRG.

2. Experts from LITRG are available for interview or to provide background information. Please contact them on the numbers at the top of the page.

3. The Low Incomes Tax Reform Group (LITRG) is an initiative of the Chartered Institute of Taxation (CIOT) to give a voice to the unrepresented. Since 1998 LITRG has been working to improve the policy and processes of the tax, tax credits and associated welfare systems for the benefit of those on low incomes.

4. The CIOT is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.

– ENDS –

George Crozier
External Relations Manager

D: +44 (0)20 7340 0569
M: +44 (0)7740 477374

The Chartered Institute of Taxation
www.tax.org.uk

Low Incomes Tax Reform Group
www.litrg.org.uk

The Association of Taxation Technicians
www.att.org.uk

1st Floor, Artillery House, 11-19 Artillery Row, London SW1P 1RT