New guidance for taxpayers receiving coding notices

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The Low Incomes Tax Reform Group (LITRG) has issued a guide on what people should do if they receive a tax calculation letter from HMRC.

Around 45,000 taxpayers are receiving letters from HMRC explaining they have paid the wrong amount of tax, with 6 million expected to receive notifications by Christmas.

The letters refer to the tax years 2008-09 and 2009-10 and it is possible that people have both overpaid and underpaid tax in the two years. These people could receive two letters in the same envelope from the HMRC. The payments could cancel each other out.

The tax authority also confirmed that it would not charge interest on underpayments under £2,000, according to a BBC report.

For those who receive a letter but may not have access to a tax adviser, the Low Incomes Tax Reform Group (LITRG) has published a guide on what to do, which can be accessed by clicking here.

UPDATE 10 Sept: 

In response to the media furore of the past week, HMRC has updated its guidance on

P800 PAYE Tax Calculations

. The P800 letters – which are

no longer being copied to advisers

– advise those taxpayers of any over- or underpayment that has accrued from the 2008-09 and 2009-10 tax years through wrongly calculated tax codes, and advises them to check their code has been correctly calculated (with a link to

P800 notes

to help them do so).


The most interesting feature of the new page on the HMRC website is its response to claims in the press that underpayments could be “written off”. It will only consider doing so if taxpayers who provided all the necessary information ask for the repayment demand to be reviewed under

Extra Statutory Concession A19


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About Gina Dyer

About Gina Dyer

I've been a journalist for four years, writing on a wide variety of topics from business and finance to travel, culture and celebrities. I began my career as an editorial assistant for Palladian Publications, a B2B publisher specialising in technical magazines for professionals in primary industries. I later moved into consumer magazines as a staff writer for French Magazine, a monthly travel publication aimed at Francophiles, and was part of the launch team for The Traveller in France, a quarterly magazine produced for the French tourist board. I was also a regular contributor to online travel portal, and later worked with customer publishers Future Plus as a freelance production editor, before joining Sift Media in January 2009. I am currently Deputy Editor of


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By Polly
13th Sep 2010 16:22

At last...

God save us from "financial experts".  I have been quietly fuming while reading and listening to media reports over the last week.  So much misinformation, some of it from people who should know better. Well done LITRG, the guide is spot on.  

A19 has always been my second favourite ESC.  Is there now a danger that it could be withdrawn after being found appropriate in so many of these cases?


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