Standard paragraphs for letters in response to receipt of a P800
Help is at hand from the Low Incomes Tax Reform Group (LITRG) as they have drafted letters to help those that feel they have been unfairly treated in being asked to pay back unpaid tax.
The LITRG cannot make any guarantees as to any outcome if you use their template letters, they cite that it is always dangerous to try and draft letters without knowing the context, to that end, LITRG state that you use them at your own risk.
If you are unsure about your tax position then consult a qualified tax adviser.
The letters are designed to help give you an idea on what to write and how to present your case.
Where you need to insert some text we have shown in square brackets the information you need to insert. For example: [your own name].
- Claiming Extra-Statutory Concession A19 (step 2)
- Employer/pension payer error (step 3)
- Requesting adjustments (step 4)
- Explanation request (step 5)
- Complaint
1. Making a claim through a Extra-Statutory Concession (ESC) A19
Dear Sir
[Your own name]
[Your NI no]
[Any other HMRC reference shown on the P800]
I have received your tax calculation for the tax year[s] [quote that which applies to you - 2008/09, 2009/10 or '2008/09 and 2009/10'].
The calculation suggests that I have underpaid tax for [quote the year or years]. I was unaware that my tax affairs were not in order. I had thought that all the tax that I was due to pay was deducted under PAYE. I believe that the underpayment has arisen because you failed to take action upon relevant information already in your possession for the year[s] in question.
For the tax year 2009/10, I appreciate that you are not notifying me of the arrears more than 12 months after the end of the tax year in which you received the information indicating that more tax was due.
However I feel that the 'exceptional circumstances' condition applies because you:
• failed more than once to make proper use of the facts you had been given about my sources of income
• allowed the arrears to build up over two whole tax years in succession by failing to make proper and timely use of information that you had been given.
I am therefore requesting that under the provisions of ESC A19 that the whole of the underpayment as shown on the P800 should be remitted.
I look forward to hearing from you.
2. If your employer/pension payer made an error
Dear Sir
[Your own name]
[Your NI no]
[Any other HMRC reference shown on the P800]
I have received your tax calculation for the tax year[s] [quote that which applies to you - 2008/09, 2009/10 or '2008/09 and 2009/10'].
The calculation suggests that I have underpaid tax for [quote the year or years].
I believe that the underpayment in question arose through a failure by my employer[s] [substitute/add 'pension payer[s]' for 'employer[s]' if relevant] to operate PAYE correctly and accordingly I believe that the law requires you to seek any tax you believe to be underpaid from my employer[s] [or substitute/add 'pension payer[s]'].
Would you please confirm that you have done so and that I need to take no further action.
3. Requesting an adjustment to the underpaid amount
Dear Sir
[Your own name]
[Your NI no]
[Any other HMRC reference shown on the P800]
I have received your tax calculation for the tax year[s] [quote that which applies to you - 2008/09, 2009/10 or '2008/09 and 2009/10'].
The calculation suggests that I have underpaid tax for [quote the year or years]. I do not believe this to be correct as I consider that you have not taken into account that:
[Here you should list the reasons why the HMRC calculation may be wrong. We have included some illustrations of potential circumstances.]
1. [For example: I have made [Gift Aid payments, personal pension payments] which reduce the claw back of age allowances of which you have taken no account.]
2. [I understand I can claim mileage costs at 40p per mile for up to 10,000 miles and 25p per mile thereafter on necessary business of my employer. However, my employer only reimburses XXp per mile. I therefore claim extra relief of XXX miles at XXp per mile. For example, if you travelled 5,000 business miles and were reimbursed 30p per mile, you can claim tax relief on an extra 10p per mile].
Would you please make the appropriate adjustments and send me your revised calculation for my consideration.
4. Requesting an explanation for your underpayment
Dear Sir
[Your own name]
[Your NI no]
[Any other HMRC reference shown on the P800]
I have received your tax calculation for the tax year[s] [quote that which applies to you - 2008/09, 2009/10 or '2008/09 and 2009/10'].
The calculation suggests that I have underpaid tax for [quote the year or years]. I am unable to agree your proposal. I have tried to understand the reasons for the underpayment but have been unable to do so.
Would you please supply me with a detailed explanation as to how the underpayment occurred and a formal confirmation that, neither yourselves nor my employer[s], [or substitute/add 'pension payer[s]' if relevant] contributed in any way to the identified underpayment.
5. Making a complaint
Dear Sir
[Your own name]
[Your NI no]
[Any other HMRC reference shown on the P800]
I have received your tax calculation for [quote that which applies to you - 2008/09, 2009/10 or '2008/09 and 2009/10'].
The calculation suggests that I have underpaid tax for [quote the year or years].
I wish to register a formal complaint about the treatment I have received from HMRC which has led to the current situation: [here you need to list facts relevant to your own situation – we have included some illustrations of potential circumstances]
1. [I have been in contact with you numerous times since April 2008 and at no time have you suggested that my tax affairs were other than entirely up to date.]
2. [You have chosen for your own purposes to delay the reconciliation for
2008/09. This has meant a financial shock to me and [if this is relevant to you] a potential loss of means-tested benefits which I could have claimed if you had acted when you had all the relevant information.]
3. [I tried to contact you before to ask if my coding notice was correct but I could not get through on the phone number you provided.]
I have examined the treatment that I can expect to receive as identified in Your Charter and I think that you have failed in those commitments in the following ways:
1. [Explain your list of points]
2. [For example: You have not provided me with information to help me understand what I had to do to check my tax position and when I had to do so in order to prevent this unexpected tax bill. (What I can expect from you, number 2.)]
3. [Example 2: You have not provided me with information in a way in which meets my particular needs as your leaflets direct me to guidance on your website and I have no access to the internet. (What I can expect from you, number 4.)]
In addition I have incurred the following expenses solely as a result of your inability to [respond to my phone calls; answer your telephones; respond to my letters; etc]:
1. [Explain your expenses]
2. [Etc…]
I consider that it is only reasonable that you do not try and collect all of the underpayment shown in your tax calculation.
I look forward to hearing further what you propose.
LITRG also have a great guide on automatic reconciliations – what to do if you get a tax calculation P800 - Guide
Scam emails
All your communication from HMRC will be by letter, they will not send you an email. If you receive an email promising a refund and requiring your bank details, DO NOT open it, it will be a scam and the same applies to any telephone calls from HMRC requesting bank details. Remember, by post only!
Most importantly, if you receive a letter regarding overpayment, don’t ignore it, do something about it as the HMRC do not go away!
See more on scam email addresses
Their mistake, your headache! Questions and answers on why it happened.
