HMRC sending tax demands to taxpayers!

HMRC sending tax demands to taxpayers!

HMRC are writing to hundreds of people that they believe need a prompt to pay the correct tax, for example pensioners and side hustle earners.

The letters will include a detailed assessment of unpaid tax on income above the personal allowance threshold and will also inform the taxpayer on exactly how to pay it and when.

There are several reasons HMRC may contact individuals about this, including potential tax on interest from savings and dividends, people receiving tax free allowances they were not entitled to, and anyone with a second income earned and not taxed at source, such as rental income and online platform sales. This also includes any tax owed on pension income.

Although the deadline to pay due tax is 31 January 2026 and there is still plenty of time to prepare, HMRC is urging those that are contacted to do their own assessments of their records and encouraging anyone who believes an error has been made in the assessment to get in touch with HMRC within 60 days to query it.

If HMRC agrees with the proposed amendment, then a second letter will be despatched with the correct calculations.

However, if HMRC does not agree then the decision can be appealed, but the taxpayer will only have 30 days to do this.

HMRC has been vocal about wanting to reduce the number of letters sent as it pushes to modernise its systems and force taxpayers online. This also includes sending texts and emails to taxpayers who are registered on the HMRC app; no-one else will be contacted this way.