The wrong calculation could leave you out of pocket or worse in line for an unexpected tax bill.
HM Revenue and Customs (HMRC) use information about wages and pensions to work out what tax to deduct, unfortunately, anything incorrect or missing can put a ‘spanner in the works’ and result in inaccuracy. This is more likely to happen if you do not submit a tax return or have multiple jobs or pensions.
What you need to do:
If you get a PAYE P800 tax calculation from HMRC there should be some notes with it to explain each section, so if there is anything you are unsure of this should help. www.hmrc.gov.uk/helpsheets/p800-notes.pdf
Other documents which you can use to help check the figures on your P800 are:
- form P60 – you get this at the end of each tax year
- form P45 – you get this when you leave a job
- PAYE Coding Notice
- P11D Expenses and benefits (business owners only)
- P9D Expenses payments and income from which tax cannot be deducted
- bank and building society statements
If you think that HMRC have made a mistake, it is best to write to them and explain what you think needs amending. Keep a copy of your letter in case you need to refer to it later.
The address for PAYE enquiries is:
HM Revenue & Customs
Pay As You Earn
PO Box 1970
You should also consider:
If you have made pension or gift aid contributions, and HMRC don’t know about it, it could affect your tax.
Blind persons allowance is often forgotten. This also includes anyone with severely impaired sight, and can be transferred to a spouse, so it is worth checking if you are eligible.
Employees may be able to claim the cost of laundering uniforms needed for work, if their employer does not provide this service or recompense.
If it all seems a bit much we are more than happy to help, and can also apply for a tax refund on your behalf should you be entitled.