Since July 2011, HM Revenue and Customs (HMRC) have been sending out P800 Tax Calculation documents relating to the 2010/11 tax year. You’ll typically get a P800 if you have paid too much or too little tax during the tax year.
Keep reading to find out what you should do if you’ve received a P800 form.
What is a P800 Tax Calculation?
At the end of each tax year, employers and pension providers send details of your salary, pension and the amount of tax that you have paid to HMRC. HMRC use this information to check that you’ve paid the correct amount of tax.
Most people pay the correct amount of tax through the Pay As You Earn (PAYE) system. If you have paid the right amount, you won’t receive a P800 Tax Calculation and you should not be concerned.
However, it is possible that you will pay too much or too little tax during the year. For example, your circumstances may have changed during the year or you may have started a new or second job.
HMRC prioritise people who paid too much tax during the previous tax year in order that they get their money back quickly. If you have paid too much tax a cheque will automatically be sent to you within 14 working days of the date on your P800 Tax Calculation.
HMRC then send our P800 tax calculations to people who haven’t paid enough tax.
What you need to do with your P800 Tax Calculation
If you receive a P800 Tax Calculation, it’s important that you check it to make sure you agree with the information. The calculation will show:
- your total taxable income
- the allowances that are due to you
- the amount of tax paid for each of the relevant tax years
- the amount of over or underpaid tax
If you agree with the tax calculation you do not need to do anything except keep the P800 form safe.
If you don’t agree with the P800 Tax Calculation, you can write to HMRC at the address shown on your calculation or you can telephone HMRC on 0845 3000 627.
What happens if you’ve paid too little tax
If you haven’t paid enough tax, HMRC will usually automatically collect any underpayment through your tax code over the next tax year, starting in April 2012.
If paying the amount over a year would cause you some financial difficulty, you should contact HMRC on Tel 0845 3000 627 to discuss your payment options. You may be able to spread the payments over two or three years.
If you owe £3,000 or more in tax, HMRC will contact you about how to pay.
Be careful of scams
If you receive an e-mail about your tax calculation asking you to disclose personal details, it is very likely to be fraudulent. Never respond to such e-mails or provide any bank or personal details.