At this time of the year HMRC will begin sending out P800 tax calculations. These calculations are provided to individuals who pay tax through PAYE and show if you have either underpaid, or overpaid, tax. Any calculations should be treated with caution – it is by no means certain that they will be correct and therefore checks should be made.
For people who do not normally fill in a tax return, each year HMRC compares the amount of tax deducted from wages and pensions with the amount that was actually due. Where there is a difference, they issue a tax calculation on form P800 which shows how much tax HMRC thinks is either owed or due to be refunded. However the figures on these calculations are not always correct.
The Low Incomes Tax Reform Group has published some useful guidance on the subject which can be accessed at the following link: P800 guidance.
As a client of Eldon, we regularly check your income tax position as part of our annual review service, ensuring you have paid the correct amount of tax each year. If you have any questions regarding the P800 calculation or your income tax position, please don’t hesitate to get in touch.