Keeping an eye on your doorstep this week can be a good idea since His Majesty's Revenue and Customs (HMRC) is sending out 'brown envelopes' that you must open and could result in a cash boost worth over £600.
HMRC Brown Envelopes Deliver Tax Updates to Workers
According to life insurance company LV, HMRC letters with crucial details about the taxes you paid last year and their allocation will be distributed throughout this month.
One woman, Lilly Russell, an employee of The Times, said she was shocked to learn that she had overpaid her taxes by £177 a month and was reimbursed £1,941 after receiving a brown HMRC envelope.
Your employer should send you a P60 at the exact same time as the brown envelope, which details your net and gross salary.
It's critical to maintain both records and compare them to ensure there haven't been any errors with your earnings that could cost you later — or even result in a fine.
If HMRC discovers that you have paid too much tax, you may receive an automatic reimbursement. For example, if you started a new job or were only employed for part of the year, you may have been converted to an emergency tax code at some point during the year, overpaid tax, and are due a refund, as detailed in the brown envelope letter.
How to Handle Unexpected Charges and Verify HMRC Correspondence
When it comes to tax returns, unexpected expenses and potential refunds can sometimes catch people off guard. Understanding how to negotiate such circumstances and ensure the legitimacy of HMRC letters is critical for financial stability.
According to a Canada Life poll, the average reimbursement for unpaid taxes was £689.
The disappointing part, of course, is that you may have underpaid your tax for the previous year, potentially costing you £783.
If you have verified and double-checked it, and your tax code matches your P60, you have no choice but to pay.
Gillian Wrigley of LV stated, LV’s Gillian Wrigley said: “If you don’t have the money to hand, explain that and they should devise a doable payment plan. It may seem difficult to believe, but HMRC is staffed by humans, and if there is an issue and you call them right away, they will usually be helpful.”
Finally, check to see if the letter is real. There are numerous scammers that use HMRC's name, particularly at this time of year, so if you are unsure, phone HMRC directly on 0300 200 3300 rather than any website or number on the letter, which may have been changed to confuse you.