The Low Incomes Tax Reform Group (LITRG) have created new guide to assist taxpayers notified of PAYE underpayments for 2010-11.

HMRC is expected to send out letters to 1.2 million taxpayers before Christmas. Most will not be represented by tax agents. 

The new guide includes:

  • Step by step guidance for people who are told they have underpaid tax
  • Examples of the letters taxpayers could write in response to receipt of a tax calculation

Introducing the guide, Kelly Sizer, LITRG Technical Officer and the guide’s lead author, said:  

“People receiving tax calculations from HMRC should always check they are correct. In the last year, LITRG’s guidance has helped thousands of taxpayers to do just that, and to have underpayments for the tax years 2007/08, 2008/09 and 2009/10 written off, where appropriate. 

 “For 2010/11, there is less cause for optimism in obtaining a write-off. But calculations should still be checked and action taken relevant to the individual circumstances. If people do owe tax, they should investigate their payment options and those on low incomes should check whether it has any effect on their entitlement to means-tested benefits.”