From May 2012, HM Revenue & Customs (HMRC) started to send out P800 tax calculations for the tax year 2011-12 for those taxpayers who have overpaid or underpaid through the Pay As You Earn (PAYE) system. These underpayments or overpayments may have arisen due to a change in a taxpayer’s circumstances during the year which has not been reflected in their tax under the PAYE system. 

Those taxpayers who have paid too much tax will be sent a cheque, in most cases, within 14 working days from the receipt of a P800 Tax Calculation. HMRC are also making repayments of tax to customers who overpaid tax for the years 2003-04 to 2007-08. Please note that HMRC will never send notifications of a tax rebate by email. Such emails are likely to be fraudulent. 

If you have paid too little tax and the underpayment is less than £3,000, HMRC will usually automatically collect any underpayment through your tax code over the next tax year, i.e. from April 2013 (as long as you have enough PAYE income from a continuing employment or pension). If paying the amount over a year would cause financial difficulty you may be able to agree with HMRC to spread the payments over two or three years. 

In some limited circumstances where there have been delays in HMRC using information HMRC may not collect the tax under Extra Statutory Concession (ESC) A19. 

If you think your Tax Calculation is wrong you should contact HMRC or contact us for advice