What is a P800?
P800 is a document issued by HMRC that shows income details, allowances & tax reliefs for the tax year. It shows the calculation of the total income tax you paid and what you are still liable to pay. You will usually only receive this document when HMRC thinks you have not paid the right amount of tax.
P800 displays your:
1) Total income earned
2) Total amount of tax paid.
3) Personal tax-free allowance.
4) Tax deductible Expenses incurred during the tax year
The P800 tax calculation has three outcomes:
1) You have paid the right amount of tax
2) You have not paid too little tax
3) You have overpaid tax
It is critical to understand how your tax calculation works in order to ensure that the information on the form is accurate for your specific scenario.
When does HMRC usually issue P800s?
HMRC will deliver P800s to taxpayers after the end of the tax year (the 5th of April). However, because the taxman's wheels spin slowly, you'll typically receive your P800 in September if you're entitled to a refund and in October if you owe further tax.
How do I complete the P800 form tax calculation?
HMRC will normally issue you a P800 tax computation for each tax year in which you overpaid tax or too little tax. There are several tax forms available for determining your tax position, the most popularly used under the PAYE system being the P60 and P45 forms.
Checking your P800
It is necessary to check the P800 document to verify the figures. You should check your P800 properly to avoid paying the wrong amount of tax. You should check the following properly –
Income – from wages, pensions, state benefits, employee benefits & saving interest. You can verify it against your P60, P45 & P11D.
Deductions - The tax reliefs which you can claim from your income. It helps to reduce your owed tax amount. Deductions are divided into two categories:
a) Flat rate job expenses – your uniform cleaning allowance.
b) Job expenses – mileage allowances or professional subscription fees, parking fees, business phone calls, travel & overnight expenses etc.
Allowances – almost everyone in the UK gets a tax-free allowance. The personal allowance for 2020-2021 is £12,570 and is deducted from your income. Anything above this amount will be liable to tax.
Adjustments – include previous years’ underpayments or overpayments which have not yet been paid back. E.g. married couple allowance.
P800's are not always accurate; it is always prudent to double-check your form to ensure you are not paying excessive or insufficient tax. The tax office will request that you review your P800 to ensure that all information is correct. If you get it wrong, you may end up paying overpaid or too little tax. After receiving your P800 document from HMRC, it is very important to check the statement carefully by verifying your income and tax figures against P60, P45 & P11D. HMRC states it is your responsibility to find any errors.
If you think your P800 is wrong
If you believe your P800 is incorrect and want to discuss your P800 and make a claim through us. We will connect you to one of the most qualified and experienced chartered accountants who can help you make a claim and minimise your tax through self-assessment. Please get in touch with FinacBooks immediately.
How to claim an HMRC P800 Refund?
If HMRC sends you a P800, it will either -
1) Demonstrate that you overpaid tax and are due to a tax refund OR
2) You paid too little tax
If it indicates that you owe tax, you may be able to claim it back online via the HMRC website. That is typically the quickest method of receiving your money, and you should have it in less than a week. If you do not comply with this within 45 days, HMRC will simply mail you a cheque. You should receive it within 60 days of the P800's expiration date.
If you are not given the option of submitting your claim online, they will send you a cheque. No action is required on your part, and the cheque should arrive within two weeks after the date on your P800. If your tax refund spans more than a year, they'll issue you a single cheque for whatever you owe.
Of course, HMRC can only reimburse you for over-payments that they are aware of. If you have work-related expenses that qualify for a tax rebate, you must claim them on your own. You can either do this online through HMRC's website or have a professional tax expert handle it for you.
What has changed?
In previous years, individuals whose refunds were due and had applied for a refund, they were receiving cheques from HMRC via post within a few days. Now after the change, HMRC encourages taxpayers to pay tax digitally using their personal tax account so they can receive the refund amount directly into their bank account.
How long does it take for HMRC to provide P800 refunds?
HMRC P800 reimbursements are generally sent via payment order within five weeks but can take a little longer. If you receive a P800 computation indicating that you are owed tax back, you may also receive a payment order for the refund.
How can FinacBooks help?
FinacBooks is a leading platform where you can search for qualified accountants offering a range of services like Bookkeeping, VAT Registration & Return filing, Payroll registrations and RTI returns, Pensions and auto-enrolment, Tax investigation service, Business plans, management accounts and more. We have better options with us where accountants will help you in p800 calculation, make a tax rebate claim and save you from incurring fines and penalties. We provide free advice to our clients, so you can contact us anytime at your convenience.
When you use FinacBooks to collect your tax refund, you never have to worry about the HMRC recovering any of your money as long as you provide us with complete and accurate information.
Any Questions? Request a callback from our Tax Experts.
