Why have I got a letter saying I owe tax?

There are literally hundreds of reasons why someone may have underpaid tax. Common causes include having more than one job, changing jobs, drawing income from your pension, becoming widowed or leaving the country.

Why would HMRC send me a letter?

HMRC will contact you by letter to tell you there is a repayment of Student Loan deductions due. We will include details of why the repayment is due and the employer you worked with at the time. This letter will tell you about changes to the way we issue repayments as a result of the coronavirus (COVID-19) situation.

What happens if I don’t pay enough NI?

If you don’t pay national insurance you will typically receive a Notice of Penalty Assessment, after which you have 30 days to pay the penalty. The HMRC will inform you in detail of the missed payment and penalty, how to pay it and what to do if you wish to appeal the decision.

How do you know if you owe HMRC money?

If you have not paid the right amount at the end of the tax year, HMRC will send you a P800 or a Simple Assessment tax calculation. Your P800 or Simple Assessment will tell you how to get a refund or pay tax you owe.

Why does HMRC say I owe tax?

HM Revenue and Customs ( HMRC ) will usually collect the tax you owe in instalments over the next year. This will happen automatically if you: pay Income Tax through an employer or pension provider.

Do HMRC use debt collectors?

HMRC use debt collection agencies to pursue taxpayers for unpaid taxes.

Can I stop paying National Insurance after 35 years?

People who reach state pension age now need 35 years of contributions (NICs) to get a full pension. But even if you’ve paid 35 years’ worth, you must still pay National Insurance if you’re working as it is a tax – one raising around £125 billion a year.

Do debt collectors call or mail?

Debt collectors, even legitimate ones, are legally allowed to call consumers at their personal numbers, and as of October 2020, a new rule from the Consumer Financial Protection Bureau (CFPB) gives debt collectors permission to contact you not just by phone, but also by email, text message and social media platforms …