As you can imagine, the H.M.R.C. have a big job each tax year-end in reviewing the tax liabilities of nearly 5.5 million people. They will receive their tax calculations (via form P800) before the end of October of the year in which the tax-year ends (so for Apr 2013 – that is 31st October 2013 and so on).
These calculations only affect those who have income taxed under PAYE and who have not been asked by H.M.R.C. to complete a self assessment tax return for year-end under review. If you don’t fall into either of these categories you don’t need to worry.
The work is largely done by computer but unfortunately the information it uses has to be manually input. In past years this has led to many wrong calculations. Clients of ours have been asked for tax they don’t owe and in some cases received tax refunds that they shouldn’t have received.
You should therefore check the calculations very carefully. You might think that H.M.R.C. would put the correct income and tax deducted from your P60 onto the form. They should also be able to enter the correct benefits in kind. However, they can and do make mistakes, so make sure that you do double check.
If the P800 form shows non-PAYE income such as bank interest or dividends then these items will be estimated as H.M.R.C. doesn’t have direct access to this information and relies on estimates based on previous year’s figures. You therefore need to check these figures carefully. If they are misstated you need to tell H.M.R.C so that they can update their calculation so that it is accurate and you then receive the appropriate refund/pay over the correct underpayment.
If you receive a form P800 (or any other) and do not understand it, we would be happy to look at it for you and give you guidance as to whether it is correct and if it is not correct what to do about getting it sorted out with HMRC. You can contact us on 01788 577613 (Rugby office) or 01908 564701 (Stony Stratford office), by email on firstname.lastname@example.org or via Twitter on @CliffordTowers.
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