Do you think you may have paid the wrong amount of tax on your earnings or pension in 2014/15?
Around this time of year HMRC sends out P800 calculations to anyone it thinks may have underpaid or overpaid tax through the PAYE system. This won’t impact on you if you’re in self-assessment, but may affect your employees or relatives if they’re in the PAYE system. For anyone in PAYE, the good news is that if you have overpaid, you’ll get a refund cheque about 2 weeks after the HMRC calculation. It’s always a good idea to check the figures on the calculation against P60s for the year though, just to make sure HMRC’s figures are correct!
Again if a P800 calculation is received showing an amount of tax supposedly due for payment, it’s really important to check the figures, as it may not be accurate. Errors can arise because the State Pension figure will be estimated, rather than showing the actual amounts received. In addition, the value of benefits (i.e. health insurance) may not match what the employer has reported, or the business expenses the employee has claimed haven’t been deducted. This can happen because the timing of returns processed by HMRC isn’t always in line with the dates the P800 calculations go out.
Another problem has been HMRC’s RTI (Real Time Information) system, which has occasionally duplicated records making it look as though an employee has underpaid tax, so again it’s really important to check the figures on HMRC’s calculations.
If you’d like some help for yourself, a colleague or relative, just get in touch on 01782 279615