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
 
Jodie Pheby
22nd July 2021 Accounts Basis Period Reform – Consultation

Under current rules, businesses draw up annual accounts to the same date each year. The profit/loss for the tax year is usually the profit/loss for the year to the accounting date – called the basis period.  Tax is paid on profits earned in the basis period ending in the tax year in question.   However,…

Read More »

Nick Edgley
15th July 2021 31st July: Can your tax payment be reduced?

Many taxpayers who are required to file a self-assessment tax return to HM Revenue & Customs should now be preparing for their next tax payment which is due by 31 July. The amount payable is the second payment-on-account for the 2020/21 tax year and is automatically calculated as half of the total tax liability for…

Read More »

Ian Piper
6th July 2021 30-Sep-21: End of most COVID support measures for SME’s

When COVID directly impacted upon the UK in Spring 2020, the Government introduced a range of measures specifically targeted to help businesses survive the expected period of financial strain. Such businesses, that are still here, should now be planning ahead for when this support is gradually unwound: 21-Jun-21 Deadline for arranging with HMRC when to…

Read More »

Megan Turner
5th July 2021 Charity annual returns

The charity annual return service is now available for 2021 and can be found on the link below. https://apps.charitycommission.gov.uk/   Charities need to submit their annual return within 10 months of the financial year end.   Dependant on the level of income, the annual return has different requirements; Income under £10,000 It is only the…

Read More »

Bethan Hassey
1st July 2021 Changes to the reduced rate of VAT for hospitality, holiday accommodation and attractions

  In July 2020 the government announced that VAT registered business who operate in the hospitality and tourism industry could use a temporary 5% reduced rate of VAT on certain supplies compared to the standard 20%. The objective of this legislation was to support businesses in this sector during the Coronavirus pandemic and assist with…

Read More »

Thomas Nicholls
15th June 2021 Tax on Cryptocurrency does not have to be cryptic

Within the last 10 years the cryptocurrency scene has exploded from the first decentralised cryptocurrency, Bitcoin, being created back in 2009 to now more than 4,000 different cryptocurrencies being in existence with a total market cap value of over £1trillion.   This has led to the creation of the Cryptoassets Taskforce which was announced back…

Read More »