The tax year end is rapidly approaching and HMRC has specific procedures you need to follow to claim refunds or pay outstanding tax
There are particular steps you must take if you think you’ve paid an incorrect tax amount. This may only become apparent to you at the close of the tax year, which is fast approaching.
On GOV.UK, HM Revenue and Customs (HMRC) sets out the process if you’ve overpaid or underpaid. In most cases, HMRC should notify you and send you a letter.
However, the tax authority may have failed to do so – in which case, you’ll need to act yourself. Typically, if you’ve overpaid or underpaid tax by the end of the tax year (April 5), HMRC will send you either a tax calculation letter (also referred to as a P800), or a Simple Assessment letter.
This will tell you how to secure a refund or settle any outstanding tax. But you’ll only get a letter if you’re in employment or receiving a pension.
GOV.UK explains: “If you’re registered for Self Assessment, your bill will be adjusted automatically if you’ve underpaid or overpaid tax. You will not get a tax calculation letter or a Simple Assessment letter.”
These letters are sent out between June and March of the following tax year.
Why you might get a tax calculation letter
You might get a tax calculation letter if you either owe tax or are owed a refund because you:
- You may have been assigned the wrong tax code, perhaps because HMRC held incorrect details about your income
- You left one position, started another and were paid by both during the same month
- You began receiving a workplace pension
- You were in receipt of Employment and Support Allowance or Jobseeker’s Allowance
- Why you may receive a Simple Assessment letter
You might receive a Simple Assessment letter if you:
- Owe tax that cannot be automatically collected from your income
- Owe HMRC in excess of £3,000
- Must pay tax on your State Pension
You’ll be required to settle the tax owed by a particular deadline.
If you haven’t received a letter
Should you suspect you’ve either overpaid or underpaid your tax but haven’t had a letter, you’ll need to take certain steps. If you think you’ve paid excessive amounts, you’ll need to apply for a refund.
You can do this:
- Online: Utilise the GOV.UK check service to establish how to claim, then submit using your Government Gateway ID
- On your phone: Access the HMRC app, review your PAYE income, and select the “claim a refund” option
- By post: Fill in a P800 or appropriate form
If you suspect you owe tax and haven’t had a letter, you ought to contact HMRC. You can do this by ringing 0300 200 3300.
Alternatively, you can write to Pay As You Earn (PAYE), HMRC, BX9 1AS supplying your full name, address and National Insurance number.
For additional information, visit the Government website here.
