TAXPAYERS could each be losing out on hundreds of pounds worth of rebates because of letters being sent out by the taxman.

Inland Revenue letters telling some taxpayers that they no longer have to fill in a tax form could be costing them payouts, warn Bournemouth chartered accountants Potter & Pollard.

Senior partner Rohan Bagshawe said: "Several of our clients have received these letters from the Revenue but all of these clients received a tax refund this year - sometimes for a few hundred pounds - and it is likely that they may be due a refund in future years.

"Certainly, they need to have their income and tax situation reviewed annually to make sure they do not miss out on any further refunds.

"Indeed, we recommend that all individuals have such an annual review anyway, especially as - should it turn out that tax has been underpaid - the Revenue will not hesitate to levy fines and penalties should they not have been informed," he added.

Potter & Pollard is urging taxpayers to:

keep all paperwork showing details of income and tax deductions;

every April let your accountant have these to review your tax for the last tax year: "They will advise you if there is any need to contact the Revenue either to claim a refund or notify a liability."

not take things at face value - "even communications from government departments."