Millions of taxpayers will receive letters in the second half of this year telling them they have paid the wrong amount of tax over the 2010/11 tax year.

HM Revenue & Customs's (HMRC's) reconciliation process involves checking the PAYE tax deducted against income taxable under PAYE to find differences.

Around a fifth of taxpayers are expected to be affected. This is the second year that HMRC has used its new computer system for the reconciliation, and it seems in a much better position on PAYE than last year.

The letter (technically a P800 form) is an informal calculation rather than a demand for tax. That may not be immediately obvious. If the letter tells you that you have overpaid tax and you are due a refund, you should still check the figures carefully - or ask us to do it. There are penalties if HMRC thinks you were careless in not spotting the over-repayment.

It is still possible for HMRC to send you a form P800 that relates to as long ago as 2007/08. However, there are strong arguments for HMRC to write off the tax under a special extra-statutory concession. If you receive a P800, especially if it is for a year earlier than 2010/11, please let us know so we can check it for you.

A note of caution: whenever HMRC sends a lot of letters, some unscrupulous people see a perfect opportunity to commit fraud. HMRC is aware of various 'phishing' scams and bogus HMRC email addresses.

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