HMRC: Request for Information Letter

[Leftie]

An employee who left us to go traveling in 2005 has had a letter from HMRC asking what she was doing between leaving us in July 2005 through to April 2006, as quote "You may have paid too much tax during 2005/6". We gave her a P45 at the time showing she had paid little or no tax whilst with us, so she knows that there is nothing much she is owed really.

Does anyone know, is this just a rouse by HMRC to get a response and does this letter have any legal basis oif she ignores it?

The letter asks for all her employment since July 2005 when she was travelling which amounts to a few weeks casual work in a far flung country (OZ). Her inclination is to ignore it because she has no paperwork to prove her overseas earnings and fears they may try and tax her for the full year she was away if she tells them she earned anything whilst overseas in Oz (which is what happened to my daughter when she came back last year and it to until last month to sort out).

Ignore it or fill it in?????

[mmm-five]

Leftie said:

Does anyone know, is this just a ruse by HMRC to get a response...

It's of the same sort as the Tax Credits letter - it only ever implies that HMRC wants to inrease you credit, it actually means HMRC wants to see how much it can reduce your credits by. After all, who in their right mind would respond to a request for info if they knew it would reduce their income?

Leftie said:

...and does this letter have any legal basis oif she ignores it?

They usually send out another if it's important, otherwise they go on the same information as the previous year - won't do any harm filling it in, unless someone has been working and not reporting the earnings.

I only ever fill them in when I've been off for a few months so I can get a quick rebate.