You will receive a P800 letter in the post if you are on PAYE and you have overpaid or underpaid tax for the 2025/26 tax year
HMRC has urged millions of people to keep an eye out for an important tax letter this summer.
You will receive a P800 letter in the post if you are on PAYE and you have overpaid or underpaid tax for the 2025/26 tax year.
There can be lots of different reasons why your tax bill was incorrect, including if you are on an incorrect tax code, you recently changing jobs, or you recently started claiming a pension.
Each year after the tax year ends, HMRC checks its PAYE records to make sure people have paid the correct amount of Income Tax on their earnings or pensions.
The P800 letters, which will be issued in batches up to March 2027, will explain how you can claim a refund if you have paid too much tax.
You can normally claim your refund online, or you can wait for a cheque to be sent in the post.
The most common code is 1257L for people who have one job or pension – although not everyone will be on this. To find your tax code, check your latest payslip, or your P45 if you have recently quit your job.
If you have underpaid tax, you would owe HMRC money as the tax would need to be paid back. It is better to sort this out sooner rather than later to avoid being hit with a bigger bill.
Marc Gill, Director of Personal Tax Operations, said: “Every year millions of people pay exactly the right amount of tax through PAYE without any action needed on their part.
“But for those who have paid too much, we want to make sure they get their money back as quickly and easily as possible.
“If you get a P800 letter this summer, follow the instructions and claim your refund through GOV.UK or the HMRC app – it only takes a few minutes.”
Am I on the right tax code?
- 0T – When an employee has not given you a P45 or enough details to work out their tax code, or when their Personal Allowance has been used up
- BR – For a second job or pension
- C – For an employee whose main home is in Wales
- C0T – When an employee whose main home is in Wales has not given you a P45 or enough details to work out their tax code, or when their Personal Allowance has been used up
- CBR – For a second job or pension (Wales)
- CD0 – For a second job or pension (Wales)
- CD1 – For a second job or pension (Wales)
- D0 – For a second job or pension
- D1 – For a second job or pension
- L – For an employee entitled to the standard tax-free Personal Allowance
- M – For an employee whose spouse or civil partner has transferred some of their Personal Allowance
- N – For an employee who has transferred some of their Personal Allowance to their spouse or civil partner
- NT – No tax is deducted
- S – For an employee whose main home is in Scotland
- S0T – When an employee whose main home is in Scotland has not given you a P45 or enough details to work out their tax code, or when their Personal Allowance has been used up
- SBR – For a second job or pension (Scotland)
- SD0 – For a second job or pension (Scotland)
- SD1 – For a second job or pension (Scotland)
- SD2 – For a second job or pension (Scotland)
- SD3 – For a second job or pension (Scotland)
- T – When HMRC needs to review some items with the employee
