What do you have to do to receive a P800 form from HMRC? HM Revenue and Customs (HMRC) will send you a “P800 calculation” if you have paid the wrong amount of tax during the tax year or the previous few years. Let’s look into why this might happen and what you need to do if you have paid the incorrect amount of tax.
Claiming a P800 Tax Refund
What is a p800 Form?
Also known as a tax calculation, a P800 form is a letter that HMRC sends you if they calculate that you have not paid the right amount of tax. It could mean that either you paid too little or too much tax. The P800 form presents the breakdown of your taxable income and paid tax. The form will show your total income, tax paid, tax-free allowance and tax-deductible expenses incurred during the relevant tax year.
You might even receive several years of P800s at the same time; however, if this is the case, remember that the underpaid or overpaid tax will be carried forward and then combined with each successive year to arrive at a grand total in the most recent tax year.
Why Would You Receive a P800?
HMRC uses a ‘tax code’ to guide pension companies and employers on how much to deduct from your pension or salary for tax payments. They base this tax code on your taxable income. Sometimes, the tax code could be wrong if the HMRC hadn’t calculated any additional income you started to receive or income you ceased receiving. Once your taxable income has been re-calculated, HMRC will resend a P800 form informing you of the amount of tax that is underpaid or overpaid for the relevant period.
What to Do If You Receive a P800?
Receiving a P800 does not mean you have done anything wrong, and HMRC won’t deduct the underpaid amount from your bank account without your permission. If you receive a P800 from HMRC, ensure the calculation is correct.
To check if the tax calculations are correct, compare the statistics on your P800 to your P60, bank statements and DWP letters. Your P60 is the end-of-the-year tax summary that your employer or pension company provides.
If you need assistance with this, feel free to contact our UK-based accountants via chat, email or phone.
How to Pay Back Underpaid Tax or Claim Overpaid Amounts?
If HMRC owes you tax, they will send a cheque or deposit the amount in your bank account. If you owe HMRC less than £3,000 in tax, they will adjust the tax code so that they can claim the underpaid amount through your salary or pension over a period of time. If you owe more than £3,000 in tax, they will send you instructions on how to pay. Generally, they expect a one-time settlement, however, if you cannot pay the amount due at once, you can call them to arrange instalment payments.
Filing a P800 Tax Refund Claim
When it comes to personal tax, people’s circumstances tend to vary, and it is best to get professional advice from a tax accountant before you base your response on the above information. If you need assistance with filing your p800 tax refund application you can reach out to us on info@taxback.co.uk or call us on 0911 014 1100