HMRC P800 Tax Calculation- Tax Overpayments & Underpayments

HMRC will post a P800 tax calculation to you if they realize you are not paying right amount of tax then what you supposed to pay. Its shows whether you have to pay tax you owe or you’re entitled to tax refund.  If you’ve overpaid your P800 form will tell you how much tax refund you will get and how you can claim it.

The amount of income, deductions, allowances, adjustments that you get and the amount of tax you’ve paid such information is collected by HMRC to calculate your Tax calculation. It is imperative that you go through tax calculation sent by HMRC by comparing details with your payslip and P11D, P45, P60 certificates. There are various tax reliefs such as uniform, travel tax relief expenses that you may be entitled for but HMRC is not aware of, they cannot give you refund for something that they are not aware of. There could be various reasons for overpayment of tax;

•          If individual was on emergency tax code for some time because he/she started a new job.
•          If employer has used a wrong tax code.
•          If individual is working on more than one job at the same time
•          If individual started working for full-time instead of part-time.
•          If taxable income of an individual is reduced.

Sometimes an individual end up dealing with more than one P800 form, if you are claiming tax refund for different tax year you’ll have form for each year. It is imperative for you to know that you can claim refund for up to 4 years at one time. The figure in the result section of the final year P800 form will tell you total refund amount. Don’t go adding up numbers given in each form because each form includes the calculations from the previous year.

Don’t throw previous P800 forms; you may need them to check calculations or if there is any discrepancies.

Claim P800 Tax Refund Online

If you’ve overpaid tax and your P800 form says that you can claim your tax refund online through Personal Tax Account. You need to log in to Government Gateway ID to claim online, If individual is using for the first time they need to set up a Government Gateway ID. For sign up they need to gather following information; bank account details, National Insurance (NI) number, Mobile or phone no to verify registration code, your employer’s payee reference number which is available on P60 or P45, Passport, payslip or P60 20015/16 for identity verification.

Once the payment is processed you will get payment direct in your bank account with 5 working days, no need to wait for cheque.

An individual can also call HMRC helpline number for tax refund, please note they may ask your national insurance number. 

HMRC will send you a cheque within 60 days of the date on your P800 letter, if you do not make a claim for tax refund within the 45 days.