P800 Form: What does it mean? How Does HMRC Make Calculation?
We know why you are here. You must be scrolling through your emails when you find the HMRC stamp in your mailbox. You have received a P800 form. It can threaten you, but it depends upon the conditions whether it owes you more tax or puts you in a refund line.
However, no matter the situation, you want to know how HMRC calculates the P800. So, let’s delve into the details of this form and answer all your queries. Also, let’s figure out how the UK’s tax body can affect you with the wrong tax bill.
- How does HMRC calculate the P800 tax?
- Can anyone dodge the P800 tax calculation?
- How do I resolve the underpaid tax that appears on my
P800? - Can I claim a refund from P800?
- How Lockhart Amin Accountants Can Help You Out?
Here is the detail of what you will have in the form:
- It will include your yearly total income for the tax year.
- The whole tax you paid over the year.
- Any tax-free personal allowance.
- Any tax-deductible expenses you may have incurred.
How does HMRC calculate the P800 tax?
HMRC compares the tax deducted from your wages to the pension payment due across the year. If they spot a difference, they will immediately issue the P800 form and send it to you.
Can anyone dodge the P800 tax calculation?
Yes, everybody can dodge the P800 form. Whenever you receive any form, check out the HMRC math before accepting it. Their system can be professional, and so are their people, but they can make mistakes, too. First, consider that P800 are not a formal payment demand but a casual way to ask for tax. So, if you have any doubts about the accuracy of the P800 calculation, you can ask HMRC to justify their calculations before agreeing to pay or getting a refund.
However, if you ignore the P800 form, you might receive a severe follow-up from HMRC to address it promptly. If you believe any figures appearing on the form are inaccurate, you can correct them by providing documentation.
How do I resolve the underpaid tax that appears on my P800?
If you are unlucky and receive a P800 document (an underpayment of tax), the letter from HMRC will highlight the steps you need to take to pay off your remaining tax. Usually, you can pay online with a simple payment method. HMRC will also make changes for the upcoming tax year through your PAYE tax code and claim them via your monthly wages, just like other tax payments.
Once you clear up all your taxes, your tax code will return to normal.
Can I claim a refund from P800?
If you get the news that the taxman still owes you money, don’t be so excited, as some steps remain to claim your refund. So now, if you have a P800 form with your tax refund info mentioned, submit a tax rebate claim to HMRC. You must have your Government Gateway ID and password to make this claim. If the ID doesn’t exist, create one through the gov. uk website.
- To make an ID, you will need
- Your National Insurance Number
- Your UK passport and driving licence
- Postal code and proof of ID
- A valid UK passport and driving licence
- Your last three months’ payslips and most recent P60
- Information held on your credit record (if you have any)
- Tax credit claim details (if you have made before)
If you successfully claim the refund, your payment will arrive in the bank within five working days.
How Lockhart Amin Accountants Can Help You Out?
P800 forms are sent to those who work through PAYE or as full-time employees rather than self-employed people. We can help you with P800 tax calculations.
The self-employed community pay taxes through annual self-assessment tax returns, where we can lend you a helping hand.
Clients who buy our accountancy services will get instant access to our in-house accountants. With the expertise of our professionals, you will stay updated on upcoming deadlines and file returns on time. You must record your incomings and outgoings; we will handle the rest.