CIOT: News from the Low Incomes Tax Reform Group of the Chartered Institute of Taxation

CIOT: News from the Low Incomes Tax Reform Group of the Chartered Institute of Taxation

CIOT: News from the Low Incomes Tax Reform Group of the Chartered Institute of Taxation

The Low Incomes Tax Reform Group (LITRG) have issued their guide on what people should do if they receive a tax calculation letter (form P800) for the 2007/08 tax year from HM Revenue and Customs (HMRC).

Last week it was announced that HMRC will now start to send out PAYE tax calculations (forms P800) for the 2007/08 tax year. Whilst many will be due repayments, an estimated 450,000 people will be informed over the next two months that they have not paid enough tax for that year. This could come on top of notices already received for the 2008/09 and 2009/10 tax years.

LITRG’s guidance, including a sample letter, can be found on their website at www.litrg.org.uk.

Introducing the guide, John Andrews OBE, Chairman of LITRG, said:

“We believe that many low-income unrepresented taxpayers should have a good case for resisting collection of tax underpaid for 2007/08 and our guide helps them to take action.”

He stressed:

“It is perverse that HMRC have sent out calculations for 2008/09 and 2009/10 yet are now reviewing the earlier year, adding to the anxiety of those who are unused to dealing with HMRC and may well have thrown away records for 2007/08.

“Let us be clear. HMRC chose to delay reconciling taxpayer records for 2007/08, although they had sufficient information in their possession to do so at a much earlier stage.

“We therefore urge P800 recipients showing an underpayment to take action as they should have an even better case for the tax to be written off.”

Notes to editors

1. LITRG are keen for their guidance 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 via 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.

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. The CIOT’s 15,000 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’.

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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

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