We understand that HMRC have started to issue end of tax year reconciliations for 2015/16 for those who pay tax under PAYE. If you pay tax under self-assessment you should not be affected.
The reconciliation compares the tax paid with the tax due, according to HMRC’s records. If you have not paid the correct amount of tax through PAYE, you can expect to receive a P800 calculation showing the amounts owed or due to be repaid.
It is important that you check the P800 carefully, or if you have a tax advisor you may prefer to ask them to do this for you.
We see many instances where the calculations made by HMRC are not correct. Errors more typically arise for those who have several jobs or more than one pension taxed under PAYE, have moved jobs during the tax year or have significant benefits in kind such as company cars and fuel.
For more information, please contact Lesley Sutton on 01484 550037 or email email@example.com.