A P800 is a document produced by HMRC detailing your income, allowances and tax relief’s for the year. You only receive a calculation when HMRC think that you have paid the wrong amount of tax. At Bolton Accountants CHW, we often review these documents on behalf of our clients to ensure HMRC have got the figures correct.
Nicola Roby, Director at Bolton Accountants CHW briefly explains:
Your P800 calculation may say you are due a refund which you may be eligible to claim online and if you do so, the money will be sent to your bank account within 5 working days.
If you are eligible but fail to make an online claim within 45 days, HMRCs will send a cheque within 60 days of the date on your P800.
If your P800 advises you are not eligible to claim online, HMRC will automatically send you a cheque within 14 days and if you’re owed tax from more than one year, you’ll get a single cheque for the entire amount.
If you haven’t received a P800 but believe you have paid too much tax you should contact HMRC explaining why you think you’ve paid too much tax. If they agree, they’ll send you a P800 and a cheque within 5 weeks.
If your P800 calculation says you owe tax HMRC will collect the tax you owe in instalments over the following year. This usually happens automatically through PAYE if you owe less than £3,000. If HMRC can’t collect the money this way they will request an online payment or a cheque or postal order.
An incorrect P800 computation is easily corrected, but you need to spot the mistake which is why it is advisable that your accountant should check any HMRC correspondence you receive. When setting up your own business there is no legal requirement to appoint an accountant but don’t go it alone! Let us deal with the numbers so you can deal with the day to day running of your business.
For advice on any this or any other issue contact Nicola Roby, Director at CHW Bolton Accountants on 01204 534031 or via our enquiry form.
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