7 things to check if you get a P800 Tax Calculation Letter

with computer

HM Revenue & Customs (HMRC) has started the annual automated End of Year Reconciliation process to check whether customers in PAYE (Pay As You Earn) have paid the right amount of tax in 2012-13.

Most people – around 85 per cent of those in PAYE – will have paid the right amount of tax for the year so won’t receive any contact from HMRC. If you have paid too little or too much tax under PAYE for 2012-13, HMRC will automatically send a tax calculation (on form P800) to you showing the details along with notes explaining what it means. It’s expected that this automated process will be completed by October 2013, and there is no need to contact HMRC.

If you have:

  • Paid too much tax, you will be sent a cheque, in most cases, within 14 working days from the receipt of a P800 Tax Calculation.
  • Paid too little tax, the underpayment will in most cases be automatically collected through your 2014-15 annual tax code over 12 months. Where this is not possible, HMRC will write to you and let you know what options are available to pay the tax outstanding.

Millions of P800 calculations will be sent out!

The P800’s are likely to contain errors because:

  1. Large amounts of data are manually input
  2. Estimates especially for Bank Interest and Investment Income

So check the following carefully:

  1. P60 – you get this at the end of each tax year
  2. P45 – you get this when you leave a job
  3. PAYE Coding Notice
  4. P11D Expenses and benefits
  5. P9D Expenses payments and income from which tax cannot be deducted
  6. Bank and Building society statements
  7. Pension Tax Deductions

Its expected that around 3 million people will be asked to pay more tax and around 2 million people will have overpaid.

Here is a link to the HMRC Helpsheet on understanding your P800


5 thoughts on “7 things to check if you get a P800 Tax Calculation Letter

  1. do i have to pay tax im 82 i already pay tax of over Β£40 for a Β£75 private pension so do i need to pay tax on a state pension yours sincerley gordon moore

  2. Hi my names James I have received a p800 today one say overpaid £££ and two say payment due so which one is a rebate ?

  3. Bit complicated but hear I go got P800 saying I underpaid due to working two jobs,
    Rang HM REVENUE THEY SAID IT WAS WHAT THEY CALL CROSSOVER I LEFT JOHN LEWIS WHICH PAY MONTHLY FOR A JOB THAT PAID WEEKLY CAUSE OF THIS THEIR SAYING I OWE Β£313.80 is this right hope you understand what I mean I was told technically they was right which is so wrong can I appeal I want to fight this as far as I can.

    1. Hi Lee

      On my blog there is a tab called tax calculators and you should be able to check the overall tax for the year, if you owe it you will have to pay you can’t appeal

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