TAX REPAYMENTS

For some time now, HM Revenue & Customs have been withholding genuine tax repayments which may have arisen under Self Assessment, PAYE or CIS Schemes.

HMRC will refer to repayments being held up as they are subject to “security checks”

HMRC have now put in place a process whereby they will write to taxpayers directly, not the agent acting for them such as Walker Thompson. The letter will ask for 3 separate ID documents together with replies to certain questions they might raise.
 
HMRC’s letter expects a response within 30 days and if they do not receive a reply with the requested documents, they will seek to close any Self Assessment file and presumably withhold any repayment. Not replying in time after allowing for Royal Mail and Covid hold ups will condense the 30 days considerably.  

There will also be the costs involved in resetting of Self Assessment if it is removed.
 
As there will be no online reply service we are suggesting that any reply to HMRC should be by recorded mail or trackable mail to confirm delivery. We are extremely concerned that taxpayers replies should be at a low risk as far as potential scammers are concerned. 

Any taxpayers who are concerned about the letter’s authenticity can contact HMRC to confirm that the letter was issued by them.