If you’re an employee or you get a pension, your employer or pension provider will deduct Income Tax from your wages throughout the year. This system of collecting Income Tax is known as Pay As You Earn (PAYE).
If your circumstances change, you may be given a new tax code. HMRC will send you a ‘PAYE Coding Notice’ which tells you what your new tax code is. At the end of the tax year, HMRC may also send you a P810 Tax Review Form. This is a simple one page form used to check that your tax code is still correct.
If you get form P810 you’ll need to fill it in and send it back straight away.
There are three common reasons when you will be asked to complete a P810 form to check the amount of tax you are paying is correct.
If you are an employee or a director, you may be able to claim a number of tax expenses. These typically include business travel, specialist clothing, tools or the cost of professional subscriptions.
Even if you are on PAYE and you don’t have to fill in a tax return, HMRC are likely to want to check your income regularly to make sure that you are paying the right amount of tax. They do this by asking you to fill in the Inland Revenue form P810.
When you fill in form P810 you can ask for the tax relief for your allowable expenses. If your expenses are over £1,000, HMRC will ask you to provide more details about your expenses by also completing the form P87.
If you’re employed and your taxable income from property is less than £2,500 (after deductible expenses), your Pay As You Earn (PAYE) tax code can be altered to collect the tax that is due on your property income.
Each year you will receive a P810 form on which you can report your property income.
Gift Aid Donations
You should always keep a record of your Gift Aid donations. You’ll need to let HMRC know about your Gift Aid donations if:
- you claim Married Couple’s Allowance, tax credits or age-related Personal Allowance
- you are a higher rate taxpayer
- you want to carry back a Gift Aid donation
If you normally complete a self assessment tax return you can tell HMRC about your Gift Aid donations by completing the relevant Gift Aid payment section.
If you don’t complete a tax return, you will provide the details on the P810 Tax Review form.