Sample letter to HMRC on receiving a 2007/08 PAYE tax ...

<strong>Sample</strong> <strong>letter</strong> <strong>to</strong> <strong>HMRC</strong> on receiving a 2007/08 PAYE tax underpayment
calculation ‘P800’
Please read before using the sample <strong>letter</strong>:
If the P800 calculation shows you have underpaid tax for 2007/08, and you have checked
and are satisfied that the calculation is accurate, the sample <strong>letter</strong> below sets out some
arguments which you might consider using or adapting <strong>to</strong> your own circumstances <strong>to</strong> show
<strong>HMRC</strong> why they should write off the tax you owe, or collect it from your employer or
pension provider instead.
Please bear in mind that we cannot guarantee the outcome of any <strong>letter</strong> you draft using this
template or any part of it, and it is up <strong>to</strong> you <strong>to</strong> ensure that whatever sample you use is
appropriate in your particular case.
Where you need <strong>to</strong> choose options in the <strong>letter</strong> or consider tailoring it <strong>to</strong> your own
circumstances, we have given instructions [in square brackets and italic font].
Ideally you should take advice from someone knowledgeable in tax matters. If
you already have a tax agent, it is advisable <strong>to</strong> consult them. If not, but the amounts
underpaid are significant, you may wish <strong>to</strong> appoint a tax adviser, who may charge you a fee.
The sample <strong>letter</strong> is set out in full on page 2 below.
Chartered Institute of Taxation
1st Floor, Artillery House, 11‐19 Artillery Row,
London, SW1P 1RT
REGISTERED AS A CHARITY NO 1037771
Tel: +44 (0)20 7340 0550
E‐mail: litrg@ciot.org.uk
www.litrg.org.uk
UK REPRESENTATIVE BODY ON THE
CONFEDERATION FISCALE EUROPEENNE

To: HM Revenue & Cus<strong>to</strong>ms [*use the address from the P800 you have received*]
Dear Sirs
Full name: …………………… [*insert your name*]
National Insurance Number: …………………… [*insert your National Insurance number*]
P800 tax calculation for 2007/08 – request for underpayment <strong>to</strong> be written off
I have received your tax calculation for 2007/08 showing I have underpaid tax.
Please: [*Choose from A, B or C below, deleting whichever is not appropriate <strong>to</strong> you*]
A. Apply Extra‐statu<strong>to</strong>ry Concession A19 <strong>to</strong> 2007/08 as I believe the same principles apply
as for 2008/09 and 2009/10 for which years you have already agreed <strong>to</strong> write off the
tax owed.
B. Write off the tax owed for 2007/08 under Extra‐statu<strong>to</strong>ry Concession A19, as you have
delayed in using information in your possession <strong>to</strong> calculate, and tell me about, the
underpayment. Not being an expert in tax matters, I had no reason <strong>to</strong> suspect that I
might not be paying enough tax. I had thought that all tax due was deducted under
PAYE.
I also understand that when considering my application for ESC A19 you should first
consider whether there has been any fault on the part of my employer/pension
payer(s); and therefore whether you should instead recover the underpayment from
them.
C. Write off the tax owed for 2007/08 under ESC A19 because the reason for the
underpayment is that my state pension and/or small occupational/personal pensions
has not been taxed correctly. There were known errors made by <strong>HMRC</strong> for that year.
[*You can consider including the following paragraph, but tailor the complaint comments <strong>to</strong>
suit your circumstances if possible*]
Please also treat this <strong>letter</strong> as a COMPLAINT as you have managed my affairs poorly. As a
PAYE taxpayer, I understand the law only requires me <strong>to</strong> keep records for the 2007/08 tax
year until 31 January 2010, so I am at a disadvantage in checking the calculation. ‘Your
Charter’ says you want <strong>to</strong> give me certainty that I am paying the right amount. Sending a
calculation of tax owed nearly three years after the end of the relevant year (a period in
which financial circumstances could have altered dramatically) does not meet that objective
and gives further grounds for writing off the tax.
[*In all cases, include this final paragraph*]
If you do not agree <strong>to</strong> write off the tax, please provide me with the following (if necessary,
treating this as a request for the information I am entitled <strong>to</strong> under Section 7 (1) of the Data
Protection Act 1998 for all years of relevance <strong>to</strong> the underpayment):
• a full breakdown of the figures used in the calculation;
• an explanation of where the figures have come from and any estimates used;
• a detailed explanation of how the tax underpayment occurred; and
• full reasons why you believe I must repay the tax.
LITRG P800 2007/08 sample <strong>letter</strong> Page 2 of 2 18.1.2011