Paid too much or too little tax?
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- Slaters Accountants in Staffordshire
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HMRC have issued a press release advising tax payers that they are sending out annual statements for the tax year to 5 April 2015.
The statements are styled P800 forms and summarise income and allowances for the year and the calculation of tax due and tax paid. If you have over paid tax the statement will trigger a repayment in most cases. If you have underpaid, HMRC will generally adjust your PAYE coding to recover the amount due during the tax year 2016-17. If this is not practical you will get a request to make a payment. HMRC have also acknowledged that is cases of financial hardship they will negotiate extended repayment terms.
Here’s what HMRC published to their website:
“This year, if you’ve paid too much or too little tax, we’re making the process as easy as possible for you.
We will tell you how we’re collecting any underpayment, or we’ll give you a cheque if we owe you money.
There is no need to contact us unless you think the details we’ve used are wrong.
What you need to do
If you get a P800 tax calculation, please check the details are correct.
- compare the figures used with your own records, such as your P60, P11d, bank statements or letters from the Department for Work and Pensions (DWP)
- use the HMRC tax checker to check how much tax you should have paid
You don’t need to do anything if the calculation is correct.
If you’ve underpaid tax
If you haven’t paid enough tax, we’ll usually change your tax code for the next year to collect the money you owe. This happens automatically so you won’t need to do anything and don’t need to contact your accountant.
Sometimes we can’t collect the money you owe through your tax code, for example, if you’re now out of work. In this case, we’ll write to you explaining how to pay the money you owe.
If you’ve overpaid tax
If you have paid too much tax, we will automatically send you a cheque within 14 days of receipt of your P800. You won’t need to do anything and don’t need to contact us.”
However complex your tax affairs, it is advisable to check the P800 form when it arrives.
Have you payed the right amount of tax? Find out by getting the best advice from your local qualified accountant.