Have you received a P800 Tax Calculation Letter from HMRC?

Why have I received this letter? You will receive this tax calculations letter if HMRC think that you have underpaid or overpaid tax in a previous year.

In most cases the adjustment will relate to an incorrect tax code in a previous year which miscalculated the taxation on an employer benefit such as a company car or private medical insurance.

What do I need to do?

If you are an employee and pay your income tax through your employer PAYE system then in most cases an underpayment will be collected through future tax payments so you should not have to do anything. The letter accompanying the P800 tax calculation should explain this.

If you have overpaid tax and are due a rebate, the letter should be accompanied by a cheque. If not, you should phone HMRC and ask for it.

Do I need to do a Self-Assessment Tax Return?

If you are a full time employee and have no other income then you do not need to do a tax return. If you have other income, for example from a rented property, interest / dividend generating investments or other income generating assets, you do need to complete a self-assessment tax return to declare that income.

If you are unsure of what you need to do or need some general payroll or income tax advice, give us a call on 0131 556 8595 and talk to our tax experts.