How to Write a Letter to HMRC
- Adil Akhtar
- 3 days ago
- 14 min read
The Audio Summary of the Key Points of the Article:
Crafting a Clear and Effective Letter to HMRC
Writing a letter to HMRC doesn’t have to feel like deciphering a tax code in the dark. Whether you’re a small business owner sorting out VAT or an individual chasing a tax refund, getting the format and content right is crucial to avoid delays or penalties. This part covers why you might need to write to HMRC, how to structure your letter, and the key details to include for clarity and compliance in the 2025/26 tax year.
Why Would You Need to Write to HMRC?
Let’s face it: nobody wakes up excited to write to HMRC. But there are plenty of situations where a letter is your best bet. Based on the latest HMRC guidance, common reasons include correcting tax code errors, appealing penalties, or reporting changes like moving abroad. For instance, in the 2025/26 tax year, the personal allowance remains £12,570, but if your tax code (e.g., 1257L) is wrong, you could overpay or underpay tax. A letter can fix this.
Other triggers include requesting a refund (via a P800 form), notifying HMRC of undeclared income (e.g., from online marketplace sales before 5 April 2023), or appealing a late filing penalty, which can reach £100 for missing the 31 January 2025 self-assessment deadline. Businesses might write to register for VAT or arrange a Time to Pay plan if they owe tax. In 2024, HMRC issued over 1.2 million nudge letters to prompt taxpayers to review undeclared income, showing how common these communications are.
How Should You Structure Your Letter?
Now, structuring a letter to HMRC isn’t rocket science, but it’s got to be spot-on. Start with your details: full name, address, and National Insurance number or Unique Taxpayer Reference (UTR). For businesses, include your VAT number or Company UTR. Next, address it correctly—HMRC has specific addresses depending on the issue. For PAYE or self-assessment, use: Pay As You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS, United Kingdom. No street name or postcode is needed, per GOV.UK guidance.
Include a clear subject line, like “Request for Tax Refund for 2024/25” or “Appeal Against Late Filing Penalty.” The body should state your purpose concisely, provide relevant details (e.g., tax year, amounts), and reference any prior HMRC correspondence. Close with a polite call to action, like requesting confirmation of receipt, and sign off formally with “Yours faithfully” if addressing “Dear Sir/Madam” or “Yours sincerely” if using a specific officer’s name.
What Details Are Essential for Compliance?
Be careful! Missing key details can delay your case or worse, trigger penalties. Always include your tax reference numbers and the tax year in question. For example, if you’re correcting a tax code error, specify your current code and why it’s wrong (e.g., “My tax code is 1100L, but I have no other income sources, so it should be 1257L”). If appealing a penalty, explain your “reasonable excuse”—say, a serious illness with evidence like a doctor’s note.
For businesses, include your VAT number or Corporation Tax UTR. If you’re requesting a Time to Pay arrangement, outline your financial situation and propose a payment plan. HMRC processed over 50,000 such arrangements in 2024, so they’re open to negotiation if you’re proactive. Always double-check figures, like the £12,570 personal allowance or the 20% basic rate tax band up to £50,270 for 2025/26, to ensure accuracy.
Table 1: Key HMRC Contact Addresses for 2025/26
Purpose | Address | Notes |
PAYE and Self Assessment | Pay As You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS, UK | For tax code issues, refunds, or self-assessment queries. |
Corporation Tax | Corporation Tax Services, HM Revenue and Customs, BX9 1AX, UK | For company tax filings or disputes. |
VAT | VAT Written Enquiries, HM Revenue and Customs, BT5 9AB, UK | For VAT registration or disputes. No street name required. |
Complaints | PAYE and Self Assessment Complaints, HM Revenue and Customs, BX9 1AB, UK | Mark “Complaint” on the envelope. |
Source: www.gov.uk
How Can You Avoid Common Mistakes?
None of us is a tax expert, but avoiding basic errors can save you a headache. First, don’t ignore HMRC letters—over 30% of taxpayers delay responding, risking penalties, according to a 2024 Low Incomes Tax Reform Group report. Second, verify the letter’s authenticity. Scam letters often demand immediate payment or bank details; genuine HMRC letters use official addresses and reference numbers. If unsure, call HMRC’s Income Tax helpline at 0300 200 3300.
Another pitfall is vague language. Instead of writing, “I think I paid too much tax,” say, “I overpaid £450 in tax for 2024/25 due to an incorrect 1100L tax code.” Finally, don’t send sensitive documents unless requested, and use recorded delivery for proof of postage. In 2023, HMRC reported 10,000+ lost letters due to incorrect addressing.
Case Study: Fixing a Tax Code Error
Picture this: Aled, a Cardiff-based teacher, noticed he was overpaying tax in 2024/25 because his tax code was 1100L instead of 1257L. He wrote to HMRC, including his National Insurance number, payslips showing deductions, and a clear request to update his code. Within three weeks, HMRC corrected it and refunded £320. His letter was concise, referenced the tax year, and included evidence—key to a swift resolution.
This part sets the foundation for writing an effective HMRC letter.
HMRC Letters & Correspondence Performance Dashboard: UK Tax Authority Communication Statistics & Response Times (2020-2024)
Practical Scenarios and Templates for Writing to HMRC
Now, let’s get into the nitty-gritty of specific situations where you might need to write to HMRC. Whether you’re a sole trader sorting out a VAT issue or an individual dealing with an emergency tax code, having the right template and approach can make all the difference. This part provides detailed scenarios, step-by-step guidance, and tailored letter templates for common tax issues, all aligned with the 2025/26 tax year rules.
How Do You Request a Tax Refund?
So, you’ve checked your payslips and realised you’ve overpaid tax—maybe due to an incorrect tax code or a one-off payment. Don’t panic; a well-crafted letter can get your money back. Start by checking your P800 form, which HMRC sends if you’re due a refund for the 2024/25 tax year. If you haven’t received one but suspect overpayment, write to HMRC at Pay As You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS, UK.
Your letter should include your National Insurance number, the tax year (e.g., 6 April 2024 to 5 April 2025), and evidence like payslips or a P60. For example, if you were taxed at the basic rate (20%) on £15,000 but your total income was below the £12,570 personal allowance, you’re entitled to a refund. In 2024, HMRC processed over 2 million refunds, averaging £750 per taxpayer, so they’re used to these requests.
Here’s a sample template:
Template: Tax Refund Request
[Your Name and Address]
[Date]
Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS, United Kingdom
Dear Sir/Madam,
Subject: Request for Tax Refund for 2024/25 Tax Year
I am writing to request a refund for overpaid income tax in the 2024/25 tax year. My National Insurance number is [NI Number], and my current tax code is [Tax Code]. I believe I overpaid tax due to [reason, e.g., incorrect tax code or temporary employment]. Enclosed are copies of my P60 and payslips showing deductions totalling £[amount].
Please review my case and process a refund for the overpaid amount. I would appreciate confirmation of receipt and an estimated processing time.
Yours faithfully,
[Your Full Name]
How Do You Appeal a Penalty?
Be careful! Missing the self-assessment deadline (31 January 2025 for online filings) can land you a £100 penalty, even if no tax is owed. If you have a “reasonable excuse”—like a hospital stay or a natural disaster—you can appeal. Your letter should go to the same BX9 1AS address, clearly stating the penalty reference number from HMRC’s notice and your excuse, backed by evidence.
For instance, if you missed the deadline due to a family bereavement, include a brief explanation and supporting documents like a death certificate (if requested). HMRC cancelled 15% of late filing penalties in 2024 after successful appeals, so it’s worth a shot if your reason is solid.\
Here’s how to structure it:
Step-by-Step Guide: Appealing a Penalty
Gather Details: Note the penalty reference, tax year, and your UTR or NI number.
Explain Your Excuse: Be concise—e.g., “I missed the 31 January 2025 deadline due to a serious illness from 15 January to 10 February 2025.”
Attach Evidence: Include medical letters or other proof, but only send copies.
Request Cancellation: Politely ask for the penalty to be reviewed and cancelled.
Use Recorded Delivery: Ensure HMRC receives your letter.
Table 2: Common HMRC Penalties and Appeal Grounds (2025/26)
Penalty Type | Amount | Valid Appeal Grounds | Notes |
Late Self-Assessment Filing | £100 (up to 3 months late) | Illness, bereavement, technical issues with HMRC site | Must appeal within 30 days of penalty notice. |
Late Tax Payment | 5% of tax due at 30 days | Cash flow issues, unexpected financial hardship | Consider a Time to Pay arrangement if unable to pay. |
Inaccurate Return | Up to 100% of tax owed | Genuine error with reasonable care taken | Provide corrected figures and evidence of care. |
Failure to Notify Income | Up to 30-100% of tax owed | Unaware of obligation (e.g., new side hustle) | Disclose promptly to reduce penalties. |
What If You’re a Business Owner Handling VAT Issues?
Now, if you run a business, VAT disputes can feel like a maze. Suppose you’re a Manchester-based café owner, Bronwen, who received a VAT assessment notice for £5,000 due to an error in your quarterly return. You need to write to VAT Written Enquiries, HM Revenue and Customs, BT5 9AB, UK. Your letter should include your VAT number, the assessment reference, and a clear explanation of the error—say, a misreported input tax.
In 2024, HMRC issued 25,000+ VAT assessments, with 40% adjusted after taxpayer correspondence. Include supporting documents like invoices or corrected returns. If you’re proposing a Time to Pay plan for a VAT debt, outline your cash flow and repayment schedule—e.g., £1,000 monthly for five months.
How Do You Handle Rare Scenarios Like Non-Resident Tax Issues?
Now consider this: If you’re a non-resident landlord or moved abroad in 2024/25, you might need to write to HMRC about the Non-Resident Landlord Scheme or tax clearance. Use the BX9 1AS address and include your UTR, details of your UK income (e.g., rental income), and your new address. For example, Siobhan, a Bristol resident who relocated to Spain in 2024, wrote to confirm her non-resident status and avoid double taxation. Her letter included her UTR, proof of relocation, and a double taxation treaty reference, saving her £2,100 in tax.
Case Study: Resolving a VAT Dispute
Let’s say Idris, a Leeds-based graphic designer, received a £3,000 VAT penalty for underreported sales in Q1 2024. He wrote to HMRC, explaining the error was due to a software glitch and provided corrected VAT returns with invoices. His letter was clear, included his VAT number, and requested a penalty review. HMRC reduced the penalty to £500 after verifying his evidence, showing how precise communication can cut costs.
This part equips you with practical tools and examples for tackling HMRC correspondence. The next section will wrap up with a concise summary of key takeaways to ensure you’re ready to act.
HMRC Letters & Correspondence Statistics
Key Takeaways and Advanced Tips for Writing to HMRC
So, you’re ready to put pen to paper and tackle that HMRC letter, but let’s round things off with some advanced tips and a concise summary of the most critical points. This part dives into less common scenarios, offers strategies to make your letter stand out, and provides a clear, numbered list of must-know points to ensure your correspondence with HMRC is effective and stress-free in the 2025/26 tax year.
How Can You Make Your Letter Stand Out?
Now, HMRC handles millions of letters annually—over 5 million in 2024 alone, according to their latest stats—so making yours clear and professional is key. Beyond the basics, consider adding a cover sheet summarising your request, especially for complex issues like Corporation Tax disputes. This sheet should list your reference numbers, the issue, and the tax year. It’s a small touch, but it helps HMRC process your letter faster.
Another trick is to use specific tax terminology correctly. For instance, if you’re addressing a PAYE issue, mention your tax code (e.g., 1257L for the £12,570 personal allowance in 2025/26) or refer to “emergency tax” if you’ve been overtaxed temporarily. This shows you’ve done your homework and reduces back-and-forth. If enclosing documents, label them clearly—e.g., “Appendix A: P60 for 2024/25”—and list them in the letter.
What If You’re Dealing with a Nudge Letter?
Let’s talk about nudge letters, which HMRC sends to flag potential undeclared income, like from crypto trading or side hustles. In 2024, HMRC issued 1.2 million nudge letters, targeting online sellers and landlords. If you receive one, don’t ignore it—respond promptly to avoid penalties. Your letter should confirm receipt, provide details of any undeclared income (e.g., £5,000 from eBay sales in 2024/25), and outline steps you’ve taken, like filing an amended return.
For example, if you’re a freelancer like Nerys from Swansea who forgot to declare £3,000 in side-gig income, your letter should include your UTR, a breakdown of the income, and a request for guidance on next steps. HMRC often reduces penalties for voluntary disclosures, with 70% of 2024 cases seeing lower fines after prompt responses.
How Do You Handle Complaints or Escalations?
Be careful! If HMRC’s response isn’t satisfactory—say, they reject your penalty appeal—you can escalate with a formal complaint. Write to PAYE and Self Assessment Complaints, HM Revenue and Customs, BX9 1AB, UK, and mark the envelope “Complaint.” Include the original case reference, a timeline of events, and why you disagree. In 2024, HMRC resolved 80% of complaints within 15 working days, so persistence pays off.
If the issue persists, request a review by HMRC’s Adjudicator’s Office or escalate to the Parliamentary and Health Service Ombudsman. For example, Gareth, a Birmingham-based contractor, successfully overturned a £2,000 penalty in 2024 by escalating his case after proving HMRC miscalculated his tax liability.
Table 3: HMRC Response Times and Follow-Up Actions (2025/26)
Issue Type | Expected Response Time | Follow-Up Action | Notes |
Tax Refund Request | 6–8 weeks | Call 0300 200 3300 if no response | Check www.gov.uk/check-income-tax-current-year for status. |
Penalty Appeal | 15–30 working days | Escalate to complaints if rejected | Provide evidence like medical records for appeals. |
VAT Dispute | 8–12 weeks | Request a formal review if unresolved | Include corrected returns or invoices. |
Nudge Letter Response | 4–6 weeks | Confirm disclosure via online account if possible | Voluntary disclosure reduces penalties. |
Source: www.gov.uk
What About Rare Cases Like Fraud Allegations?
Now consider this: If HMRC suspects tax fraud—say, underreporting income deliberately—you’ll need a robust letter to address their inquiry. In 2024, HMRC investigated 10,000+ fraud cases, often triggered by discrepancies in self-assessment returns. Your letter should go to the BX9 1AS address, include your UTR, and provide a detailed explanation with evidence like bank statements or contracts. If complex, consider consulting a tax advisor, as penalties can reach 100% of the tax owed.
For instance, Eleri, a Liverpool-based consultant, faced a fraud inquiry in 2024 after HMRC flagged unreported consulting fees. Her letter clarified the income was reported under a different UTR due to a business merger, backed by contracts and bank records. HMRC dropped the case after her clear, evidence-based response.
Case Study: Resolving a Nudge Letter Issue
Picture this: Owain, a part-time Uber driver in Cardiff, received a nudge letter in 2024 about undeclared £4,500 from ridesharing. He wrote to HMRC, including his UTR, a breakdown of his earnings, and proof of expenses like fuel costs. His letter proposed an amended self-assessment return and requested a penalty reduction. HMRC accepted his disclosure, reducing the penalty from 30% to 10% of the tax owed, saving him £900.
Summary of Most Important Points
Always include your National Insurance number or UTR in your letter to HMRC for quick identification.
Use the correct HMRC address, like BX9 1AS for PAYE and self-assessment, to avoid delays.
Clearly state the tax year (e.g., 2024/25) and purpose, such as requesting a refund or appealing a penalty.
Provide evidence, like payslips or medical letters, to support your case, but send copies only.
Use recorded delivery to ensure HMRC receives your letter and keep proof of postage.
For tax code errors, specify the incorrect code (e.g., 1100L) and the correct one (e.g., 1257L).
When appealing penalties, explain a “reasonable excuse” with supporting documents to improve success chances.
For VAT disputes, include your VAT number and corrected returns to resolve issues faster.
Respond to nudge letters promptly, disclosing undeclared income to reduce potential penalties.
Escalate unresolved issues to HMRC’s complaints team or the Adjudicator’s Office if needed.
FAQs
Q1: What is the best way to contact HMRC if a letter is not appropriate?
A1: For urgent issues or when a letter isn’t suitable, contacting HMRC by phone at 0300 200 3300 (Income Tax) or using their online services via the GOV.UK personal tax account is effective.
Q2: Can you send an email to HMRC instead of a letter?
A2: HMRC does not accept emails for most formal tax queries due to security concerns, but some issues can be addressed through secure messaging in your online HMRC account.
Q3: How long does HMRC keep records of letters sent by taxpayers?
A3: HMRC typically retains correspondence records for six years, aligning with the period taxpayers must keep tax records.
Q4: What happens if HMRC does not respond to a letter?
A4: If no response is received within the expected timeframe (e.g., 6–8 weeks for refunds), taxpayers can follow up by calling HMRC or submitting a formal complaint.
Q5: Can you write to HMRC anonymously?
A5: Anonymous letters are generally not processed, as HMRC requires identification details like a National Insurance number or UTR to action requests.
Q6: Is it possible to request a meeting with HMRC instead of writing a letter?
A6: Meetings are rare but can be arranged for complex cases, such as fraud investigations, by contacting HMRC directly to discuss options.
Q7: What should be done if a taxpayer suspects they received a scam HMRC letter?A7: Verify the letter’s authenticity by checking for official HMRC addresses and reference numbers, and report suspected scams to HMRC’s phishing hotline at 0300 200 3300.
Q8: Can a letter to HMRC be handwritten or must it be typed?
A8: Handwritten letters are acceptable as long as they are legible and include all required details, though typed letters are preferred for clarity.
Q9: How can a taxpayer confirm HMRC received their letter?
A9: Using recorded delivery provides proof of postage, and taxpayers can request confirmation of receipt in their letter or check their online HMRC account.
Q10: What languages can a letter to HMRC be written in?
A10: Letters should be in English for processing, but HMRC can provide translation services for non-English speakers upon request.
Q11: Can a tax advisor write a letter to HMRC on behalf of a taxpayer?
A11: Yes, a tax advisor can write the letter if authorised, typically via a 64-8 form submitted to HMRC.
Q12: What is the process for correcting a mistake in a letter sent to HMRC?
A12: Send a follow-up letter with the correct details, referencing the original letter and explaining the error clearly.
Q13: Are there specific HMRC departments for different types of taxes?
A13: Yes, departments like PAYE, VAT, and Corporation Tax have specific addresses, such as BX9 1AS for PAYE and Self Assessment or BT5 9AB for VAT.
Q14: Can a letter to HMRC include multiple issues, like a refund and a penalty appeal?
A14: It’s better to address one issue per letter for clarity, but multiple issues can be included if clearly separated with distinct subject lines.
Q15: What should a taxpayer do if they don’t have a National Insurance number or UTR?
A15: Provide alternative identification, like a full name, address, and details of recent HMRC correspondence, and request assistance to locate their records.
Q16: How does HMRC handle letters from non-residents?
A16: Non-residents should use the same addresses (e.g., BX9 1AS for self-assessment) but clearly state their status and include details of UK income sources.
Q17: Can a letter to HMRC be sent digitally, like through a scanned PDF?
A17: Digital submissions are not accepted by post, but some issues can be addressed via HMRC’s online portal or secure messaging system.
Q18: What is the cost of sending a letter to HMRC?
A18: Costs depend on postage; standard first-class mail starts at £1.65, while recorded delivery is around £3.30 for proof of delivery.
Q19: How can a taxpayer appeal an HMRC decision made after a letter?
A19: Request a statutory review in writing within 30 days of HMRC’s decision, or escalate to a tax tribunal if the review is unsatisfactory.
Q20: What should be included in a letter to HMRC about a deceased person’s taxes?
A20: Include the deceased’s name, National Insurance number, date of death, and executor details, addressing the letter to the PAYE and Self Assessment department.
About The Author:
Adil Akhtar, ACMA, CGMA, CEO and Chief Accountant of Pro Tax Accountant, is an esteemed tax blog writer with over 18 years of expertise in navigating complex tax matters. For more than three years, his insightful blogs have empowered UK taxpayers with clear, actionable advice. Leading Advantax Accountants as well, Adil blends technical prowess with a passion for demystifying finance, cementing his reputation as a trusted authority in tax education.
Email: adilacma@icloud.com
Disclaimer:
The information provided in our articles is for general informational purposes only and is not intended as professional advice. While we strive to keep the information up-to-date and correct, Pro Tax Accountant makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained in the articles for any purpose. Any reliance you place on such information is therefore strictly at your own risk. Some of the data in the above graphs may to give 100% accurate data.
.png)