Introduction to P800 Tax Calculation

P800 Tax Calculation


What is a P800 Tax Calculation?

P800 is a document issued by HMRC that shows income details, allowances & tax reliefs for the tax year. It shows the calculation of the total income tax you paid and what you are still liable to pay. You will usually only receive this document when HMRC thinks you have not paid the right amount of tax.

The P800 tax calculations have three outcomes:

  1. You have paid the right amount of tax

  2. You have not paid enough tax

  3. You have paid too much tax

P800 Tax Calculation

If you have made a Tax Rebate Claim

If you initiated the request for a tax rebate claim, you will receive four tax calculations as part of the process (one for each year you claimed).

If you receive more than one calculation, do not add them together to calculate your tax refund. The result of each year is automatically included in the following year’s calculation until the final year.

Result Income tax
Total tax payable £400
Tax you already paid £1600
Plus repayment supplement £0.01
HMRC owes you 1199.99

Note- The final rebate amount will include the previous year’s amount too. The amount for the previous year is shown on page 2 under the heading “adjustments”.

For example – suppose you made a tax rebate claim for uniform & business mileage. HMRC owed you £100 in the last 4 years i.e. £400.

P800 Calculations

The result of the P800 calculation are given below –

  1. For 2013-14 – HMRC owes you £100

  2. For 2014-15 – HMRC owes you £200 (£100 for current year + £100 of previous year)

  3. For 2015-16 – HMRC owes you £300 (£100 for current year + £200 of previous years)

  4. For 2016-17 - HMRC owes you £400 (£100 for current year + £300 of previous years)

The total rebate claim due is £400, which is shown in the final calculation.

Checking your P800


It is necessary to check the P800 document to verify the figures. You should check your P800 properly to avoid paying the wrong amount of tax. You should check the following properly –

  1. Income– from wages, pensions, state benefits, employee benefits & saving interest. You can verify it against your P60, P45 & P11D.

  2. Deductions- the tax reliefs which you can claim from your income. It helps to reduce your owed tax amount. Deductions are divided into two categories:

    • a) Flat rate job expenses – your uniform cleaning allowance.
    • b) Job expenses – mileage allowances or professional subscription fees, parking fees, business phone call, travel & overnight expenses etc.
  3. Allowances– almost everyone in the UK gets a tax-free allowance. The personal allowance for 2018-19 is £11,850 and is deducted from your income. Anything above this amount will be liable to tax.

  4. Adjustments– includes previous years’ underpayments or overpayments which have not yet been paid back. E.g. married couple allowance.

If your P800 document is correct, you do not need to do anything.

If you have paid too much tax, the surplus amount will be refunded by HMRC via cheque within 4 weeks of receiving your P800.

If you have underpaid the tax and tax amount does not exceed £3000, HMRC will collect the tax in installments in the upcoming years. If you underpaid the tax amount and it is more than £3000, HMRC will provide you with information about the repayment schedule.

If you think your P800 is wrong


If you believe your P800 is incorrect and you want to discuss your P800 and make a claim through us. Please get in touch with our accounting experts at 020-3021-2326 or you can e-mail us at info@nomismasolution.co.uk.

How to claim your P800 refund?


If you received a letter from HMRC saying that you have paid more tax than required, you can easily claim your refund online by logging into your personal tax account and following the tax claiming process on the website.

HMRC issues letters to millions of tax payers who underpaid or overpaid the tax after completing the reconciliation process at the year end. HMRC sends most of their letters to individuals between August and October.

What has changed this year?


In previous years, individuals whose refunds were due and had applied for a refund, received cheques from HMRC via post within a few days.

From the last 2 years, HMRC encourages tax payers to pay tax digitally using their personal tax account so they can receive the refund amount directly into their bank account.

Check your Calculation


After receiving your P800 document from HMRC, it is very important to check the statement carefully by verifying your income and tax figures against P60, P45 & P11D. HMRC states it is your responsibility to find any errors.

How to Claim your Tax Refund from HMRC?


If you are one of the lucky people who overpaid the tax last year and confirmed your calculations are correct, you can claim your tax refund from HMRC in three ways:

  1. To claim online – Go to the official HMRC website and login into your personal tax account using your government gateway ID. If you are new to the online HMRC service, you must set up a government gateway ID before applying for a refund.

    You should have following information readily available –

    • a) National insurance number
    • b) P60, a pay slip or a passport to verify your identity
    • c) Employee’s PAYE reference number (Shown on your P60 or P45)
    • d) Bank account details
    • d) Mobile or landline access as verification code will be sent to you while doing registration.

    After completing the online process, your rebate amount will be credited into your bank account within 3-5 days.

  2. Contact HMRC – If you are having trouble opening a new account or accessing your existing online tax account. You can call HMRC on 0300200330 to request your refund. HMRC phone lines may have a long waiting time.

  3. Cheque sent by HMRC – If you don’t claim your return within 45 days, HMRC will automatically send your full refund amount via cheque.

Is "https://www.tax.service.gov.uk" a genuine website?


Yes, https://www.tax.service.gov.uk is the new link used by HMRC to direct the tax payers to the correct page to claim their refund.

Nowadays, there are many scams in relation to tax refunds. Therefore, it is important you never disclose your personal details unless you are certain the website is genuine. It is to be noted that HMRC never send text messages & e-mails telling you about a refund.

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