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Email Template: HTML Formatting Controls appear to be unavailable for template type - 'Custom (without using Letterhead)'

Knowledge Article Number 000213878
Description When creating a new Email Template from either:

Setup | Email | My Templates
Setup | Communication Templates | Email Templates

In Step 1, if the user selects 'HTML (using Letterhead)', Step 3 will include the HTML Formatting Control options

User-added image

If creating an Email Template of type 'Custom (without using Letterhead)', the user will notice that the HTML Formatting Controls are not exposed in Step 3.
Resolution The above behavior is by design.  When creating an Email Template of type 'Custom (without using Letterhead)' vs 'HTML (using Letterhead)', the HTML Formatting Controls will not be available.  

With the selection 'Custom (without using Letterhead)', the HTML Body section is for custom coding (you must either know HTML or obtain the HTML code to insert in your email template); whereas the option 'HTML (using Letterhead)allows you to utilize the HTML Formatting Controls. 

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