Receiving a letter from HMRC can be stressful. Whether it’s about a tax query, Self Assessment, VAT, or another matter, it’s important to act promptly and understand your options. Ignoring correspondence can lead to penalties, interest, or further complications.
1. Don’t Panic – Read the Letter Carefully
HMRC letters are usually formal but clear. Key things to check include:
- The type of issue (tax return, unpaid tax, compliance check, etc.)
- Deadlines for response or action
- Contact details if you need to get in touch
Understanding the letter fully will help you respond correctly and avoid unnecessary mistakes.
2. Verify It’s Legitimate
Unfortunately, HMRC scams exist, so always confirm that the letter is genuine. HMRC correspondence will usually include:
- Your name, address, and Unique Taxpayer Reference (UTR)
- Official HMRC contact details
- Clear reference to your tax affairs
If in doubt, contact HMRC directly using official numbers from their website, not those listed on the letter.
3. Gather Your Records
Before responding, collect all relevant documents such as:
- Bank statements and invoices
- Previous tax returns
- Receipts for expenses or deductions
- Any prior correspondence with HMRC
Being organised will make it easier to provide accurate information.
4. Respond Promptly and Professionally
HMRC expects a timely and factual response. Depending on the letter, your options may include:
- Providing additional information or clarification
- Filing a missing tax return
- Agreeing on a payment plan if tax is owed
Responding promptly can prevent penalties, interest, or escalation of the issue.
5. Seek Professional Advice
Tax correspondence can be complex, and mistakes can be costly. A professional accountant or tax advisor can:
- Review the HMRC letter and explain your obligations
- Draft a correct response
- Negotiate with HMRC on your behalf if needed
- Ensure you remain compliant while protecting your financial interests
Final Thoughts
Receiving a letter from HMRC doesn’t have to be alarming. By staying calm, checking legitimacy, organising records, and seeking professional support, you can resolve issues efficiently and avoid unnecessary penalties.
Need help responding to HMRC?
Contact Bolton Tax Accountants for expert advice and support with all HMRC correspondence, Self Assessment, and tax compliance in the UK.