An HMRC letter is a reason to read, verify and act, not a reason to assume the worst. It may ask for information, confirm a change, explain a tax calculation or say that money is overdue. For a UK limited company, the useful first move is to identify the tax, period, amount or question, deadline and response route. Then check the letter against the company’s records and use an independently obtained HMRC contact if anything is unclear.
A clear five-step process is more useful than guessing what an unopened envelope might mean. The action depends on the letter’s actual content and deadline.
Read the whole letter, including any enclosure. Note the date it was issued and the date by which HMRC asks for a response or payment. Look for the tax type—VAT, Corporation Tax or another liability—and the accounting period or reference number. A letter about an assessment or a missing return is different from a demand for an amount already agreed.
Write a one-line summary for the person responsible for finance: “HMRC asks us to [action] by [date] concerning [period].” This prevents the envelope from being filed without the task being assigned. Keep a copy and the original envelope or electronic record if its delivery date may matter.
2. Check that the contact is genuine
HMRC publishes guidance on checking letters it has sent. That list is not a complete catalogue of every letter, so an unlisted letter is not automatically false. If a letter asks for payment, bank details, documents or a reply through an unfamiliar route, check it through the company’s HMRC online account or contact details obtained directly from GOV.UK. Avoid relying solely on a phone number, QR code or web address printed in a letter you have not verified.
If the letter appears to be a scam, use HMRC’s official reporting route rather than sending company information to the sender. Keep the genuine-letter check and the underlying tax question separate: a director may still need to confirm whether a real liability exists in the company’s HMRC account.
3. Compare the letter with the company records
Find the relevant return, calculation, payment confirmation and bank entry. Check whether the amount in the letter matches the liability or assessment for the same period, and whether a recent payment may not yet have been allocated. The company’s accountant or bookkeeper may have filed a return or received another notice; bring their records into one place.
| Letter mentions | Check in the company records |
|---|---|
| Unpaid VAT | VAT return, actual payment deadline, payment reference and bank confirmation. |
| Corporation Tax | Accounting period, Company Tax Return, computation, payment reference and due date. |
| Missing return | Which period HMRC says is missing and whether a filing receipt exists. |
| Penalty or interest | Decision date, tax period, underlying balance and payment dates. |
| Information request | The exact question, documents requested and response deadline. |
Do not assume a payment to HMRC was credited to the correct tax or period. Equally, do not pay a disputed amount blindly if the records reveal an error. Use the official account and HMRC contact route to reconcile it while keeping an eye on the response date.
4. Respond according to the actual problem
If the amount is correct and the company can pay, check the payment method and reference so the money reaches HMRC on time. If it cannot pay, contact HMRC promptly about the amount, due date and an affordable plan. HMRC’s payment-plan guidance describes the company income, spending and other-tax information it may ask for.
If the letter is about a calculation or a penalty you believe is wrong, use the review, appeal or correction process relevant to that decision. Keep evidence of what was submitted and when. If the letter asks for information, answer the question and retain a copy; a finance offer will not satisfy a request for a return or supporting documents.
For an overdue VAT bill, the site’s VAT payment-options guide explains HMRC and funding routes. For a Corporation Tax bill, the Corporation Tax funding page describes the borrowing option. A loan is relevant only where the company has a genuine payment need and can afford the repayments.
5. Record the outcome and the next date
Log the date of any call or online message, the department or reference, what was agreed and who in the company owns the next action. Put the response or payment deadline into the company calendar. If HMRC says a document is missing, record who will prepare it. If a payment plan is agreed, add its instalments to the cash forecast alongside future tax dates.
This record matters especially when several people handle the post. An unresolved letter can move between a director, accountant and bookkeeper without anyone taking responsibility for the actual response.
What if the letter says an HMRC visit may follow?
Do not assume that every warning letter means a visit is scheduled. Read what the letter actually says, verify it and contact HMRC if the company cannot pay or disputes the balance. HMRC’s current unpaid-tax guidance explains when it may contact or visit a business and what it can do if a debt remains unresolved. The detail depends on the debt and circumstances; do not rely on a universal number of warning letters or a guaranteed grace period.
Common questions
Is every HMRC letter a demand for payment?
No. It may concern a return, an assessment, an information request, a change to registration, a decision or an amount due. Read the action and deadline before choosing a response.
What if I cannot find the letter type on HMRC’s genuine-letter list?
The published list is not exhaustive. Verify through the company’s HMRC account or a contact route reached independently from GOV.UK; do not treat the absence of a listing as proof either way.
Should I send company bank details to the address in the letter?
First verify the letter and its response method. Use the official account and HMRC guidance for the relevant tax. Keep a record of any information submitted.
Can a tax loan deal with every HMRC letter?
No. Funding may help a suitable company pay a genuine tax bill, but it does not file a return, correct an assessment or answer an information request.
Next step: assign the letter to one person, verify the contact and act by its stated date. If a confirmed VAT or Corporation Tax bill cannot be paid from company cash, speak to VAT Loans about whether a funding quote is worth comparing with HMRC’s payment options.