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CIOT: Tax experts issue guide to tax repayments

CIOT: Tax experts issue guide to tax repayments

Tax experts issue guide to tax repayments

The Low Incomes Tax Reform Group (LITRG) have published a guide for people who receive tax repayment letters from HM Revenue and Customs (HMRC).

HMRC say that between 1.7 and 3.5 million people will get a letter (technically known as a ‘P800’) over the summer informing them they are due a tax refund for the 2010-11 tax year. The letters start going out in mid-July. A further 1.2 million people will receive a letter telling them they owe tax for that year. These letters will not start going out until September.

LITRG’s guide is available from the Group’s website via the link: http://www.litrg.org.uk/News/2011/2011-repayments

The guide includes:
An explanation of who will be getting letters from HMRC
Guidance on how to check if HMRC’s calculations are accurate
Information on what to do if you think the calculation is wrong or incomplete, or you do not understand it
Information about how to claim money owed from previous tax years
Examples of the letters taxpayers could write in response to receipt of a tax calculation

Additionally, a question and answer guide on the 2011 PAYE reconciliation process is available on the website of the Chartered Institute of Taxation: http://tinyurl.com/taxqa2011

LITRG Chairman John Andrews said:

“Taxpayers receiving letters from HMRC need to check their calculations carefully – even if the letter says they are getting a refund. The calculation will only be as good as the data held on HMRC’s computer.

“Last year, LITRG helped countless taxpayers to decipher and deal with their PAYE tax calculations. Now we hope to do the same for calculations issued for the tax year which ended on 5 April 2011, starting with people who receive tax repayments.

“It is important that people contact HMRC if their refund is too big, as well as if it is too small. If HMRC repay you too much and you don’t tell them, you could be charged a penalty if they think you were careless in not spotting it.”

Notes to editors

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.

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. The CIOT’s more than 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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