HMRC guidance explains the steps to take if you think you’ve paid the wrong amount of tax
There are specific steps you must follow if you believe you’ve paid an incorrect amount of tax. This may only become evident to you at the end of the tax year, which is rapidly approaching.
On GOV.UK, HM Revenue and Customs (HMRC) outlines the procedures if you’ve overpaid or underpaid. In most instances, HMRC should inform you and provide the necessary paperwork.
However, the tax authority may have neglected to do so – in this case, you’ll need to take action yourself. Usually, if you’ve overpaid or underpaid 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 instruct you on how to obtain a refund or pay any outstanding tax. But you’ll only receive a letter if you’re employed or receiving a pension.
GOV.UK states: “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 dispatched between June and March of the subsequent tax year.
Why you might receive a tax calculation letter
You might receive a tax calculation letter if you either owe tax or are due a refund because you:
- You might have been placed on the incorrect tax code, for instance because HMRC had inaccurate information about your earnings
- You finished one job, began a new one and received payment from both in the same month
- You started receiving a workplace pension
- You received Employment and Support Allowance or Jobseeker’s Allowance
Why you might receive a Simple Assessment letter
You could receive a Simple Assessment letter if you:
- Owe tax that can’t be automatically deducted from your income
- Owe HMRC more than £3,000
- Need to pay tax on your State Pension
You’ll need to settle the tax you owe by a specific deadline.
If you’ve not received a letter
If you believe you’ve either overpaid or underpaid your tax but haven’t received a letter, you will need to take certain actions. If you think you’ve paid too much, you will need to request a refund.
You can do this:
- Online: Use the GOV.UK check service to determine how to claim, then use your Government Gateway ID to submit
- On your phone: Log into the HMRC app, check your PAYE income, and use the “claim a refund” button
- By post: Complete a P800 or relevant form
If you believe you owe tax and you haven’t received a letter, you should get in touch with HMRC. You can do this by dialling 0300 200 3300.
Alternatively, you can write to Pay As You Earn (PAYE), HMRC, BX9 1AS providing your full name, address and National Insurance number.
For further information, visit the Government website here.
