HMRC 'bullying' letters ask why taxpayers pay less than average

Mike Down, of Baker Tilly, said rather than check the self assessment tax return, which gives individuals an opportunity to explain why their tax payments could appear lower than the average rate, Revenue officials have been sending out spurious letters to whoever its computer systems identifies as a possible risk.

In the letters, seen by the Telegraph, HMRC says: “Looking at the figures in your self assessment tax calculation for the tax year ended, we can see that your effective tax rate is lower than average for people with a similar amount of income to you. This could mean that there is something wrong with your tax return.”

The letters also point out that "paying the right amount of tax is important as it helps pay for the public services that we all rely on". Mr Down said this "scare tactic" will unsettle certain individuals.

An HMRC spokesman for the revenue said the letters are part of a trial to help individuals identify any mistakes they may have made on their self assessment return.

The spokesman denied that the letters are being send out widely, estimating that 1,000 letters have been sent out to date.

“We want to understand whether this approach will help individuals complete their self assessment returns correctly. If a customer is content that their return is accurate then they do not need to do any thing. Any one who needs help is welcome to get in touch with us," added the spokesman.

Earlier this week new figures shown the revenue has upped its tax take by £3.2 billion over the past year.

A record £23.9 billion was collected for the year to the end of March. More than £8 billion was through large business, over £1 billion from criminals and £2.7 billion from tackling avoidance schemes in the courts.

Middle class professionals including accountants and barristers are being increasingly targeted by the revenue.

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