Media reports in October suggested that HMRC have issued a number of incorrect 2014/15 tax calculations to PAYE taxpayers. LITRG explains what to do to check yours.
19/11/2014, by Low Incomes Tax Reform Group, Tax Articles - Income Tax
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LITRG always advises people to check PAYE tax calculations (known as form ‘P800’) carefully. This is because an automated system draws together the information HMRC receives about your tax position – mostly from employers and pension providers – and uses it to produce the tax calculation. You need to compare this with your own records to check that it is correct and complete.
What the calculation will say
It is not yet known how many people may have received incorrect calculations, but it is hoped that it is a relatively small figure – in the thousands – compared to the millions of people taxed under PAYE. If the calculation shows that you have not paid enough tax, you will be asked to arrange some means of paying the difference. If it shows that you are due a refund, you will be sent a cheque after receiving the calculation.
The 2014/15 calculations
Whilst the detail is not yet known, LITRG understands that there might be some discrepancies in the data that HMRC have drawn together for some people’s 2014/15 calculations. So if you have received a calculation in recent weeks, there is a small chance that it could be wrong.
HMRC are reviewing the calculations and narrowing down the problem. In the meantime, LITRG suggests that you follow the group’s guidance to check your P800 calculation.
What to do if you think your P800 calculation might be wrong
If, after following the guidance, you think your P800 calculation might be wrong, LITRG suggests that you:
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do not worry! Equally, though, do not leave the matter be – contact HMRC on the Income Tax helpline to discuss your concerns;
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do not pay anything if the calculation says you owe money, nor bank any cheque you receive for a refund, until you have clarified whether the calculation is correct.
Help is available if needed
If you need independent help, read the final section of LITRG’s guide. This gives details of how to find a professional tax adviser, and information about getting help from one of two tax charities if you are on a low income and unable to afford advice.
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