Opening a letter from HMRC is unsettling, but most are not demands for money. Many are notifications, and a good number tell you that you are owed something. Here is how to tell which one you have, and what to do next.
HMRC sends millions of letters a year and most are not demands. Before anything else, look for three things: a reference number, an amount, and a deadline. If there is no amount and no deadline, it is almost certainly informational.
Not sure what you are holding? Paste or photograph it here and Sorted will tell you what it is, how urgent it is and what the next step should be.
Your tax code decides how much tax comes out of your pay or pension. HMRC updates it when your income, benefits or employment change. A P2 notice explains the new code and why it changed.
It is worth checking rather than filing away: a wrong code is one of the most common reasons people overpay tax for months without noticing. Our tax code guide explains how to read it.
A P800 says HMRC has recalculated your tax for a year. It will show either an overpayment, which normally means a refund, or an underpayment.
Common causes are changing jobs, having more than one pension, or being put on an emergency code. See tax refunds.
Some letters ask you to confirm details or file a return. These carry real deadlines and are worth diarising the day they arrive — the deadline page lists the fixed dates in the UK year.
If you need to reply in writing, our letter writer will draft it properly.
Scammers impersonate HMRC constantly, usually by text or email rather than post. The tells are consistent:
HMRC does not ask for bank details by text or email, and does not threaten arrest. If in doubt, do not use the link — go to GOV.UK yourself, or paste the message into our scam check.
Refunds can arise from overpaid PAYE, an emergency tax code, employment changes or pension income. Claiming direct through your Personal Tax Account is free and usually quick.
Refund companies advertise heavily here and typically keep a large share. Some ask you to sign a deed of assignment, which can send future refunds to them too. You never need one to claim what you are owed. Also worth checking: gaps in your National Insurance record, which can quietly reduce your State Pension, and work expenses you can still claim.
If a letter says you owe money you cannot afford, contact HMRC before the deadline and ask about Time to Pay. Arrangements are routine, and making contact early puts you in a far better position than silence.
If debts are mounting more widely, free help exists — see debt help for the charities that do this at no cost.
No. Many HMRC letters are notifications — a changed tax code, an updated record, or a refund you are owed. Read the letter for a reference number, an amount and a deadline before assuming the worst.
A P800 is a tax calculation showing HMRC thinks you paid too much or too little tax in a tax year. If you overpaid you are usually due a refund; if you underpaid, HMRC normally collects it by changing your tax code.
HMRC does not ask for bank details or personal information by text or email, and does not threaten arrest. If a message pressures you to act within minutes, that urgency is itself the warning sign. Go to GOV.UK directly rather than using any link in the message.
You do not need to. Claiming direct through your Personal Tax Account is free. Refund firms typically keep a large share, and some ask you to sign a deed of assignment that can route future refunds to them as well.
Contact HMRC before the deadline and ask about Time to Pay. Arrangements are common and the position is much better if you make contact rather than waiting for enforcement.
Read the letter for a reference, an amount and a deadline before assuming the worst. Tax code notices are informational, P800s often mean a refund, and anything arriving by text demanding urgent payment deserves suspicion rather than obedience.
Paste it or photograph it. Sorted explains it in plain English, finds the real deadline and drafts your reply.