HMRC aims to make tax adjustments easy

HM Revenue & Customs (HMRC) says it is aiming to make life easier for people who have paid too much or too little tax during the tax year.

HMRC said on 12 August that between then and October this year, it would be contacting taxpayers who had overpaid or underpaid with a P800 tax calculation.

It told taxpayers: “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.”

If too little tax has been paid, HMRC usually changes the taxpayer’s tax code for the next tax year so that the money due will be collected automatically from their wages. If this is not possible – perhaps because someone has retired and is no longer working – HMRC will write to them, explaining how the money can be paid.

Where too much tax has been paid, HMRC will automatically send a cheque within 14 days of the P800 reaching them.

Anyone receiving a P800 who feels HMRC is incorrectly reclaiming tax they do not owe may find it helpful to seek expert tax advice.

Moore Thompson can assist with all aspects of tax, including reviewing P800 calculations and preparing tax returns, to help avoid future issues with HMRC and maximise use of reliefs and allowances to improve tax efficiency. For more information, please contact us.