Most people should have paid the right amount of tax through the Pay As You Earn (PAYE) system and there is nothing more for employers, employees or HMRC to do - so you do not need to be concerned if you do not get a P800 Tax Calculation. However, if you have been sent a P800 tax calculation by HMRC, it either means you’re getting a tax refund or you need to pay more tax.
If you receive a P800 Tax Calculation, it's important you check it to make sure you agree with the information included as HMRC have been known to make errors. The calculation will show your total taxable income, the allowances that are due to you and the amount of tax paid for each of the relevant tax years. It will also show the amount of over or underpaid tax.
Where your P800 shows non-PAYE income such as bank interest or other investment income, the figures will be estimated as HMRC doesn’t have direct access to these details and relies on you to provide them. So make sure you compare these figures in particular to your own records.
If you agree with the tax calculation you do not need to do anything but keep it safe. If you don't agree with the P800 Tax Calculation, you should call HMRC as soon as possible.
If the P800 shows you owe tax of £3,000 or less, where possible will HMRC aim to collect it by adjusting your code for 2014/15 so you’ll pay the extra tax through your earnings for that year.
Where the P800 shows you’ve overpaid tax, you’ll receive a cheque, usually within 14 days.
Please feel free to contact your local TaxAssist Accountant to discuss this further.
By Jo Nockels
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.