The brown envelopes are a hallmark of this time of year
Brown envelopes - containing average charges of £783 from HMRC - are landing on doormats this week. These letters, a common sight at this time of year, are sent out by His Majesty's Revenue and Customs to reconcile underpayments or overpayments of tax for the previous financial year.
If HMRC determines an underpayment of tax due to reasons such as job changes, undeclared bank savings interest, frequent eBay sales, or undeclared second jobs, a repayment will be demanded. The average tax underpayment stands at £783, as per a survey by Canada Life, reports the Express.However, if you've overpaid your tax, perhaps due to excessive taxation at the start of a new job, you could receive a refund.
"If you don't have the money to hand, explain that and they should devise a doable payment plan. It might seem hard to believe, but HMRC is staffed by humans, and if there IS a problem and you contact them straightaway, they will usually be helpful."
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