How long do I have to reply to HMRC?

The letter itself will state a date, and it is usually 30 days from the date of issue. If you need longer, that can often be agreed, but it has to be asked for before the deadline rather than explained afterwards. Tell us the date as soon as you have it.

Does an HMRC letter mean I have done something wrong?

Usually not. Many letters are automatic, triggered by a figure that looks unusual against averages or by information reported by a third party such as a bank or an employer. Being asked a question is not the same as being accused of anything.

Can you deal with HMRC on my behalf?

Yes. Once you authorise us as your agent we handle the correspondence and speak to HMRC directly, so the letters and the calls come to us. Most clients say this is the single thing that makes the process bearable.

What if the letter says I owe money I cannot pay?

Say so early rather than ignoring it. Payment arrangements can often be negotiated, and the terms available tend to be better when the conversation happens before enforcement begins rather than after.

An HMRC letter just landed. Now what?

There is a particular feeling that comes with seeing HMRC on an envelope. Whatever it turns out to be, the first thirty seconds are the same for everyone.

So let us take the drama out of it. In twenty-five years we have opened a great many of these on behalf of clients, and the overwhelming majority are routine: a reminder, a request for one figure, a change to a tax code, a penalty that turns out to have been issued in error. A genuine investigation is rare, and even then it is a process with rules, not a raid.

Read it properly, twice

Letters from HMRC are written to cover every case rather than yours, which is why they read as more alarming than they are. Before you react, find four things:

What HMRC is actually asking for, in your own words.
The deadline, and whether it is a date to reply by or a date to pay by.
The reference number, which tells us which tax and which year it concerns.
Which office or team sent it, and whether a named officer is handling it.

Those four things determine everything that follows. Nothing else on the page needs a decision from you today.

Check what it is before you decide what to do

Different letters need genuinely different responses, and the wording is the clue. A rough guide:

Reading the letter

If the letter mentions	It usually means	What matters most
A reminder or a statement	Something is outstanding on your record	Check it against your own records before paying
A request for information	HMRC wants one or two specific figures	Answer exactly what was asked, and nothing more
A compliance check or enquiry	A return is being examined	Get representation before you reply
A penalty or a surcharge	A deadline was missed, or HMRC believes it was	Whether you have grounds to appeal, and the appeal window

A guide to reading the letter, not a substitute for reading it. Bring it to us if the wording is unclear.

If you are not certain which of those you are holding, that in itself is a good reason to send it to us rather than guess.

Replying well matters far more than replying quickly. Almost every deadline in this process can be discussed; a badly worded answer cannot be withdrawn.

What we tell every client on the first call

Then hand it over

This is the part clients tell us makes the most difference. We take over the correspondence, so the letters come to us and not to your kitchen table. We work out what HMRC actually needs, present your position accurately and in the best available light, and deal with the officer directly. It is the whole point of our HMRC enquiries work, and it is included in the way we look after clients rather than being a separate emergency service.

Two people going through paperwork together at a desk — The letters come to us, not to your kitchen table.

If it is a serious enquiry

A small number of letters do open a formal investigation, including the ones that arrive under Code of Practice 9. If you are reading one of those with a knot in your stomach, the important thing to know is that it is a process with defined stages, and that how the first response is handled shapes everything after it. Do not reply on your own, and do not delay speaking to someone either.

We have sat on the client's side of that table many times. You would have one experienced person beside you the whole way through, and you would not be the one talking to HMRC.

This article is general guidance, current at the date shown, and is not advice for your specific circumstances. Tax depends on your individual position and the rules change. Please speak to us before acting on anything you read here. RCI Luton Ltd cannot accept liability for decisions taken solely on the basis of this article.