HMRC starts to issue P800 Tax Calculation FormsMonday, September 13th, 2010
How you can help if employees ask you about the figures shown on the P800 Tax Calculation they have received from HMRC.
On 6 September, HMRC started to send out a letter direct to individual taxpayers, informing them that HMRC’s records indicate that they have paid too much or too little tax for the tax years 2008-09 or 2009-10 tax years. The letter is accompanied by a P800 Tax Calculation form and a P800 Notes document that explains the numbered notes on the P800.
Relatively few Tax Calculations are being sent out initially as this is a new procedure and HMRC wants to monitor the effect of the documents on taxpayers and measure the impact on contact centres and helplines. The number issued each day will be increased gradually and the exercise should have been completed by early January 2011.
Individuals who are represented by an agent should show the letter and P800 form to the agent. Agents are not being sent separate copies of the documents.
If employees bring the documents they have received to the payroll office, they should be directed to the guidance provided on HMRC’s website (see links below) for the procedures they need to follow if they have been told they owe tax but disagree. The payroll office cannot get directly involved but may be able to provide information to assist employees when they discuss their situation with HMRC using the contact details shown on the P800 (0845 3000 627).
HMRC’s website provides the following guidance:
- where the employee has overpaid tax, a refund will normally be received within seven working days.
- where the employee has underpaid tax and
- believes the calculation is wrong in some way, the instruction is to contact HMRC on 0845 3000 627
- believes that HMRC should already have collected the tax because the correct information has been given to HMRC but HMRC has failed to act on it, the provisions of Extra-Statutory Concession A19 may apply and, in limited circumstances, HMRC may waive the tax liability.
- where the employee receives two P800s, one for each tax year, any overpaid or underpaid tax shown on the form for 2009/10 is carried forward to the form for 2009/10. As a result, the 2009/10 form sets out the cumulative situation.
The options available to taxpayers for paying the tax that is owed are:
- if the tax owed is less than £2000, an adjustment will automatically be made to the employee’s tax code for 2011/12. If the employee requests, HMRC may be prepared to spread the repayment over more than one tax year.
- if the tax owed is £2000 or more, HMRC will ask for the payment to be made in full immediately. Again, there is provision for repayments to be made in installments.