New wave of PAYE tax calculations issued
HMRC is now sending out tax calculations (P800 forms) for PAYE taxpayers for 2014-15.
How this might affect you
If you are an employee or pensioner and have not paid the right amount of tax under PAYE, HMRC may send you a bill, or a refund.
Why might this happen?
This may happen because:
- Your employer or pension provider used an incorrect tax code
- HMRC issued an incorrect tax code to an employer or pension provider
- The information HMRC holds about you is inaccurate or out of date. This could include information about taxable benefits in kind from your employer (such as a company car or medical insurance)
- You have multiple jobs or pensions
- You have received taxable state benefits during the year
You should not receive a P800 tax calculation form if you are registered for self-assessment and send in an annual tax return to HMRC.
Whose fault is it?
You may underpay tax due to an error by HMRC or by your employer or pension provider. But in some cases you may receive a refund or a bill just because of the way the PAYE system works.
What can I do about it?
The most important thing to do is to check the figures. You should check the tax allowances due to you and figures for both income and tax paid. There is a guide to help you do this on the LITRG website.
If you think there is something wrong, you should contact HMRC.
It is important to check both refunds and bills. If HMRC finds out later that a refund is incorrect, you may be asked to pay it back.
In some cases, where your employer or pension provider has made a mistake, you may be able to ask HMRC to collect the tax due from your employer or pension provider. In exceptional cases, it may be possible to ask HMRC to write off the bill.
In other cases, you may need to make arrangements with HMRC to pay the tax.
There is more detail about these options in the LITRG guidance available on the link above.