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PAYE Tax Calculations

From May 2012, HM Revenue & Customs (HMRC) started to send out P800 tax calculations for the tax year 2011-12.

HMRC are also making repayments of tax to customers who overpaid tax for the years 2003-04 - 2007-08

At the end of each tax year, employers and pension providers send details of the salary, pension and tax paid for each individual to HMRC. They use this information to check that the correct amount of tax has been deducted.

Most people have paid the right amount of tax through the Pay As You Earn (PAYE) system and there is nothing more for employers, employees or HMRC to do - so you do not need to be concerned if you do not get a P800 Tax Calculation.

However, some people may pay too much or too little tax during the year. Typical examples are people whose circumstances change during the year (perhaps because they've got an additional source of employment or pension income), or who move in and out of work.

Those 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.

If you have paid too little tax, HMRC will usually automatically collect any underpayment through your tax code over the next tax year, 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 please contact HMRC on Tel 0845 3000 627 to discuss payment options, they may be able to spread the payments over two or three years.

If you make an arrangement with HMRC to pay back the tax you owe, they will not charge interest on this amount.

If the payment due is £3,000 or more HMRC will contact you about how to pay.

Extra Statutory Concession (ESC) A19 allows HMRC not to collect tax in some limited circumstances. If you think this may apply to you, you can find further information by following the link below.

HMRC delays in using information

What you need to do with your P800 Tax Calculation

If you receive a P800 Tax Calculation, it's important you check it to make sure you agree with the information included. The calculation will show your total taxable income, the allowances that are due to you and the amount of tax paid for each of the relevant tax years. It will also show the amount of over or underpaid tax.

If you agree with the tax calculation you do not need to do anything but keep it safe.

Please make sure you read the explanatory notes that came with the tax calculation as these will help you understand what it means. You can also read the notes online.

P800 - Understanding your P800 Tax Calculation Notes (PDF 79K)

P800 Additional Notes - Underpaid and overpaid tax (PDF 136K)

If you need more help please follow the link below.

Checking your P800 Tax Calculation

What to do if you think your Tax Calculation is wrong

If you don't agree with the P800 Tax Calculation, you can write to HMRC at the address shown on your calculation or Tel 0845 3000 627.

HMRC will never send notifications of a tax rebate by email

If you are contacted unprompted by email about your tax calculation, or asked to disclose personal or payment information be aware this is very likely to be fraudulent. If you have received an email claiming to be from HMRC that you suspect may be fraudulent please forward it to: phishing@hmrc.gsi.gov.uk and remember do not disclose any personal information.