HM Revenue & Customs (HMRC) has begun its annual end of year reconciliation process to check that people have paid the right amount of tax in 2014-15.
It announced on 8 June that it would start the process, a normal part of the PAYE regime, by sending out P800s, which show any underpayments or overpayments of tax. A cheque will follow around a fortnight later for people who are due a repayment.
Where people owe less than £3,000 in tax, HMRC will collect the money due in instalments or they can make a single payment of the full amount.
The reconciliation process, which affects employees and pensioners – not people who pay tax through self assessment – should be completed in October.
HMRC said: “This automated process ensures those who have had a change in circumstances during the last tax year (2014-15) that was not captured in their tax code have paid no more or less than they should.
“Any discrepancy could be because the taxpayer changed jobs, had more than one job for a time, a change of company car or received investment income that was not reported during the year.”
Anyone who believes they have been paid the right amount of tax already, but is asked to pay more tax, should contact HMRC as quickly as possible to resolve the issue.
Moore Thompson can provide expert advice on all aspects of personal and business taxation, including resolving disputes with HMRC over tax due. For more information, please contact us.