Tax Rebates & Refunds

Making sense of your P800 tax calculation

December 28, 2012
Posted in Income Tax — Written by Geoffrey

If you have received a document from HM Revenue & Customs (HMRC) called a P800 Tax Calculation, this means you have either paid too little or too much tax. The overpaid or underpaid tax may not necessarily be from this tax year; it could be from a few years ago.

The P800 document: what you need to know

Why have I received a P800? You will receive this document if HMRC believes you have paid the wrong amount of tax, and the department finds this out from the details of your income submitted by your employer at the end of every tax year.

You need to check your P800 over carefully. It could be that HMRC thinks your tax is wrong because they have incorrect or insufficient information about your income or circumstances. A good way to check your P800 is to cross-reference it against the information on your P60 (the statement you receive at the end of the tax year), but you can also use bank statements, P45 statements and PAYE Coding Notices.

What to do if you’ve paid too much or too little tax. If the information on your P800 is right and you have paid the wrong amount of tax, HMRC will either take the underpaid amount from your next year’s tax in equal instalments or it will send you a tax rebate.

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