HMRC are currently sending letters to taxpayers whose Tax Returns for 2011/12 claimed the remittance basis of taxation.
These letters are an ‘educational exercise’ by HMRC and have caused much controversy. The idea of the letter is to outline that this is a complicated area of tax and it may not be understood exactly what a remittance is. However the factsheet attached with the letter has been criticised by the ICAEW and CIOT as some of the examples of remittances can be misleading.
It invites individuals to contact their agent or HMRC if they believe they may have made a remittance that has not previously been declared.
Should you receive one of these letters it does not mean that your Tax Return is incorrect. Please do feel free to contact us if you are in receipt of such a letter.