HMRC has been sending out what are known as ‘nudge’ letters and follow-up texts to taxpayers who may have needed to estimate some of their calculations for the 2024/25 tax return. It has identified taxpayers that it believes have included ‘round sum’ estimates in their self-assessment return for 2024/25, and is reminding them they need to refile the correct return if they haven’t already done so.
This can happen if you do not have all the information needed to complete your tax return before the filing deadline. In these circumstances, it may be possible to submit the return using reasonable estimates or provisional figures where appropriate. However, once the correct information becomes available, the return should be amended to ensure the figures reported to HMRC are accurate.
But those people who haven’t refiled their correct return yet are being reminded that they need to by HMRC.
Don’t ignore the letter
If you have received one of these letters from HMRC, please don’t ignore it.
Before responding to HMRC, it is sensible to speak to your accountant. In many cases the issue can be resolved quickly, but responding without fully understanding the position may create unnecessary complications or result in incorrect information being provided to HMRC.
You usually have 12 months from the statutory filing deadline to refile the return with correct information. This would mean you should have until January 31, 2027, to amend the 2024/25 tax return. But HMRC is encouraging people to make their amendments sooner, and the letters may have a different deadline, said the Low Incomes Tax Reform Group (LITRG).
Similar messages will be going out to all taxpayers in an equivalent position, and are designed to encourage you to check your returns in case they need refiling. If you haven’t got a letter but know that you need to refile your return with the correct information, then now would be a good time to adjust it.
Even if the amended figures are the same as the ones you submitted originally, you should still refile the return, said the LITRG. This is because you may have ticked a box on the original return saying it contained provisional figures. If that is the case, you need to refile and remember to untick that box before you resubmit your return.
What if I think my return is correct?
If you receive one of these letters but you believe everything in your tax return is correct, then you should contact HMRC’s Self-Assessment Helpline, said the LITRG, and they should be able to give you the right guidance.
You can also speak to your accountant to make sure you’re not mistaken and do have amendments to make to your tax return. Either way, checking now will be far better than realising a mistake has been made later.
If you choose to ignore the letter, or fail to contact HMRC by the date specified in the letter, you may find HMRC opens an enquiry into your self-assessment return for 2024/25, said the LITRG. If they then find your return does contain inaccuracies, you could face a penalty, and you may have to pay late payment interest if you haven’t paid enough tax.
Disclaimer
This article is intended for general information purposes only and reflects our understanding of current legislation and HMRC practice at the time of writing. It should not be relied upon as professional advice. Tax legislation and guidance can change, and the application of the rules will depend on individual circumstances. You should seek professional advice before taking any action based on the information contained in this article.
We can help you
If you think you may need to refile your 2024/25 self-assessment tax return because you needed to update the figures, or because you believe you have made a different mistake, then please contact us and we will do everything we can to assist you.