Guide for challenging HMRC underpayment letters issued

A new guide has been issued for those approaching retirement that explains how to challenge the HM Revenue and Customs (HMRC) letter informing the recipient that they have underpaid tax in the 2010-11 year.

The Low Incomes Tax Reform Group has produced the advice and recommended that people take action, check their calculations and – if necessary - challenge HMRC's figures.

It warned that in the next few days the first batch of calculations will be made, which is accompanied by the sending out of letters.

In the run-up to Christmas, the organisation expects to send out approximately 1.2 million letters alerting recipients that they have paid the wrong level of tax.

Within the new guidance, people will be given step-by-step guidance on responding to these letters, a guide to the rules that could be applicable in these cases and example response letters.

Carole Spiers, who runs an employee counselling and stress management training group, has advised savers preparing for retirement who are worried about their debt repayments to get in touch with their lender to discuss their situation.