A P800 is a letter that you may receive from HMRC to advise that you have paid the incorrect amount of tax. You’ll receive this by post.
A P800 can show you:
There are several reasons why you may have paid the incorrect amount of tax through no fault of your own! These include circumstances such as:
If you get a P800, you should check the details against HMRC with your P60, P45 and P11D forms, to make sure that there hasn’t been a mistake. If you have multiple P800s, don’t worry. HMRC takes into account previous years’ figures. This means you’ll only have to worry about the most recent P800 you received.
Whilst it can be terrific news to get a P800 (i.e. HMRC owing you money due to you overpaying tax), it can be alarming being told that you owe more tax. Don’t panic – the P800 is not an urgent tax demand. You have time to contact HMRC and double check on the amount owed and work out a realistic way of paying your tax.
Even if you haven’t received a P800, you can still claim a tax refund. You could still be owed tax from expenses that need to be declared to HMRC.
The tax year – also known as the fiscal year – runs from 6th April until the following 5th April.
In the UK, you must keep your tax records for at least six years from the end of the relevant tax year. Accounting software can help you to digitally store your records without taking up space in your office!