Caution over 2016/17 P800 tax calculations issued by HMRC

31st August 2017

If you are employed or getting a pension, HMRC will check that you have paid the right amount of tax for the tax year.  If you have under or overpaid, they will issue a P800 tax calculation.  The calculation is broken down into various sections to show your income, deductions, tax allowances, and the tax under or overpayment.  P800s are typically only sent to taxpayers who are not in Self Assessment (i.e. to those that do not have to complete a tax return).

 

There have been a number of issues with P800s in the past, including:

  • Duplicated employment or pension income.
  • Other income (e.g. investment income) remaining as per the previous tax year when it is subject to variation.
  • The Marriage Allowance not being accounted for.

 

This year, there is a specific issue with bank/building society interest.  From 5 April 2016, all banks/building societies have been required to pay interest gross (i.e. without deducting tax).

 

However, some 2016/17 P800s have been issued which do not reflect this change.  The interest is shown as having been received net of tax, with some taxpayers receiving an incorrect tax refund as a result.

 

If you have been issued with a P800, be sure to check that it is correct; otherwise you may pay more tax than you should or mistakenly accept a refund that is not due.  If you need any further advice on P800s, please contact us.



 
Other items in Blogs
 
Victor Courdelle
15th October 2018 If HMRC Can’t Say, Who Can? – Records Required for ‘Cash Accounting for VAT’ Under MTD

Reference to VAT Notices 700/21, 700/22 and 731 suggests that a business using Cash Accounting for VAT under Making Tax Digital will be required to:- Maintain digital accounting records at transaction level: Keep a digital VAT account using Accrual accounting; Cross reference Monies Received and Paid against individual Sales and Purchase invoices within their digital…

Read More »

Thomas Carter
12th October 2018 How to choose a business structure

Are you thinking about setting up a business?  If so, one of the first decisions you will need to make is that of business structure. The main business structures are: sole trader, partnership, limited liability company, and limited liability partnership (LLP). Sole trader – This is the easiest set up, with very little in the way of red…

Read More »

Richard Alecock
11th October 2018 Why a start up business should complete a business plan

A business plan is a written document that describes your business. By committing your thoughts to paper, you can understand your business better and also map specific courses of action that need to be taken to improve your business. It covers objectives, strategies, sales, marketing and financial forecasts. A business plan can help you to:…

Read More »

Richard Alecock
11th October 2018 Making Tax Digital, VAT and newly registered businesses

All VAT registered businesses with a turnover over the current VAT registration threshold of £85,000 will be required to comply with the Making Tax Digital (MTD) record keeping and reporting requirements for VAT periods which start on and after 1st April 2019. Where a business is VAT registered but has turnover under £85,000 at April…

Read More »

Matilda Mawson
5th October 2018 Have you elected not to claim child benefit?

You may wish to consider the implication this could have on your state pension in later life. Following the introduction of the high income child benefit charge in January 2013 many new parents have decided not to make a claim for child benefit as their individual income is well above the threshold to be fully…

Read More »

Victor Courdelle
4th October 2018 Working With Award Winning Software

We are delighted to announce that two of our chosen software providers have just won national recognition in the 2018 Accounting Excellence Software Awards held in London on 20 September: Xero Accounts – Winner – Accountancy Excellence Awards 2018: Small Business Accounting Software of the Year, Practitioners’ Choice. Receipts Bank – Winner – Accounting Excellence…

Read More »