HMRC is simplifying the process for those who have paid too much or too little tax.

Taxpayers will be sent their P800 tax calculation by the end of October 2015 – this should be checked against the records the taxpayers hold, for example against their P60, P11D, bank statements etc… It is also possible to check whether the correct amount of tax has been paid through HMRC’s tax checker.

Taxpayers need only contact HMRC if there is a discrepancy in the figures.

If the computation appears to be correct no action need be taken. In cases where too much tax has been paid, the taxpayer will receive a cheque within 14 days of receiving the P800. If too little tax has been paid, this will normally be collected by adjusting the taxpayer’s tax code for the following year. HMRC will notify the taxpayer informing them of how any underpayment will be collected.

Simplifying the process will no doubt be a welcome change for taxpayers. However, you should have your P800 tax calculation checked to ensure you have paid the right amount of tax – especially since you could be faced with penalties if the correct amount of tax is not paid on time.

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