Two steps to take if you’ve paid the wrong tax as HMRC deadline looms | Personal Finance | Finance
On GOV.UK, HM Revenue and Customs (HMRC) explains the options if you’ve paid either too little or too much. In most cases, HMRC should let you know and send you the appropriate documents.
However, the tax authority may have failed to do so – in which case you will need to take matters into your own hands.
Typically, if you’ve paid too much or too little tax by the end of the tax year (April 5), HMRC will send you either a tax calculation letter (also known as a P800), or a Simple Assessment letter.
This will tell you how to get a refund or pay tax you owe. But you’ll only get a letter if you are employed or you get a pension. GOV.UK says: “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:
- Were put on the wrong tax code, for example, because HMRC had the wrong information about your income
- Finished one job, started a new one and were paid by both in the same month
- Started receiving a pension at work
- Received Employment and Support Allowance or Jobseeker’s Allowance
Why you might get a Simple Assessment letter
You might get a Simple Assessment letter if you:
- Owe tax that cannot be automatically taken out of your income
- Owe HMRC more than £3,000
- Have to pay tax on your State Pension
You’ll need to pay the tax you owe by a certain deadline.
If you’ve not been sent a letter
If you think you’ve either overpaid or underpaid on your tax but you’ve not received a letter you will need to take certain steps. If you think you’ve paid too much you will need to claim a refund.
- Online: Use the GOV.UK check service to determine how to claim, then use your Government Gateway ID to submit
- On your phone: Sign into the HMRC app, check your PAYE income, and use the “claim a refund” button
- By post: Fill out a P800 or relevant form
If you think you owe tax and you have not received a letter, you should contact HMRC. You can do this by calling 0300 200 3300. Or you can write to Pay As You Earn (PAYE), HMRC, BX9 1AS giving your full name, address and National Insurance number.
For more information, visit the Government website here.
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