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HMRC have recently sent out letters to people whose overall tax rate is lower than average, compared to others with similar levels of income.  It then goes on to suggest that there may be something wrong with their tax return and that they should check it.

Many people find this type of official letter worrying, but there are many legitimate reasons why your tax may be lower than the average.  You may be receiving dividends which are taxed at lower rates, and/or be contributing significant amounts into your pension fund which will reduce the amount of tax you pay.

Whatever your situation, if you do receive this type of letter from HMRC please don’t worry. Just give us a call and we’ll check everything for you.