HMRC ‘we owe you cash’ letters exit to 40,000 individuals
HMRC is writing to tens of thousands of people to tell them that the department owes them money – the tax authority is currently in the process of writing to 40,000 people
HMRC is in the process of contacting tens of thousands of individuals who are owed money by the department. A person took to social media to query the authenticity of a surprise letter they received from HMRC.
The letter stated that the individual was due a refund of over £430 from a tax credit claim dating back to the 2011/2012 tax year. The recipient asked HMRC to confirm if the letter was genuine. Responding on November 3, HMRC clarified: “Yes, we are. As tax credits have ceased, we’re going through all the old records to finalise everything before all the tax credit systems are shut down.”
With the tax credits system, including Working Tax Credit and Child Tax Credit, having ended in April 2025, and being replaced by Universal Credit, the letter explained: “You previously had an award for tax credits. As tax credits have come to an end, we have reviewed your account and found that you have unpaid tax credits due.”
HMRC apologised for the oversight, stating: “We’re sorry that we’ve not handled your tax credits claim as we should have”, reports the Mirror.
The individual was instructed to call HMRC on 0345 300 3900 to arrange payment of the owed amount.
However, those receiving similar letters are advised to contact HMRC to verify the authenticity of the correspondence. When questioned about the letters being sent to customers, a spokesperson for HMRC stated: “Tax credits customers have now migrated to Universal Credit.
“We’re currently reviewing historic accounts and writing to any customers we identify with unpaid tax credits, with instructions on how they can receive their payment.”
So far, the department has dispatched letters to approximately 22,000 customers who were owed money. The tax authority anticipates contacting an additional 38,000 individuals by the end of January.
Elsewhere, landlords are also being warned to watch out for letters from HMRC. Experts say HMRC is, during its Let Property Campaign, sending letters to individuals it believes have rental property income that hasn’t been declared.
Scott Gallacher, Director at Leicester-based Rowley Turton, called it a “timely warning”.
He said via Newspage: “It’s not uncommon to hear of amateur landlords who assume that having a repayment mortgage means there’s no taxable profit. However, ignorance of the law is no defence.
“HMRC’s data-matching capabilities are becoming increasingly sophisticated, and landlords need to ensure they’re fully compliant rather than waiting for a letter to arrive. Any landlords unsure of their tax position should speak to an accountant as soon as possible.”
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