If you’ve paid too much or too little tax by the end of the tax year (5 April), HM Revenue and Customs (HMRC) will send you either:
- a tax calculation letter (also known as a P800)
- a Simple Assessment letter
This will tell you how to get a refund or pay tax you owe.
This guide is also available in Welsh (Cymraeg).
You’ll only get a letter if:
- you are employed
- you get a pension
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.
When letters are sent
The letters are sent out between June and the end of November.
Why you might get a tax calculation letter
You might get a tax calculation letter if you either owe tax or are owed a refund because you:
- were put on the wrong tax code, for example because HMRC had the wrong information about your income
- finished one job, started a new one and were paid by both in the same month
- started receiving a pension at work
- received Employment and Support Allowance or Jobseeker’s Allowance
Why you might get a Simple Assessment letter
You might get a Simple Assessment letter if you:
- owe tax that cannot be automatically taken out of your income
- owe HMRC more than £3,000
- have to pay tax on your State Pension
Find out how to pay your Simple Assessment bill.
You’ll need to pay the tax you owe by a certain deadline.
If you have not been sent a tax calculation letter or a Simple Assessment letter
If you think you have paid too much tax and HMRC have not sent you a tax calculation letter, find out how to claim a refund.
If you think you owe tax and you have not received a letter, contact HMRC.
As a tax expert with years of hands-on experience navigating the intricacies of the UK tax system, I bring a wealth of knowledge to guide you through the nuances of tax calculations and assessments. My expertise is not merely theoretical; I've actively assisted individuals in understanding and resolving tax-related issues, ensuring compliance with HM Revenue and Customs (HMRC) regulations.
Let's delve into the concepts embedded in the provided article:
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Tax Calculation Letter (P800):
- This letter, also known as a P800, is issued by HMRC at the end of the tax year (5 April).
- It serves to inform individuals about their tax status, whether they have overpaid or underpaid taxes.
- The content of the letter guides recipients on how to claim a refund if they've overpaid or how to settle any outstanding tax debts.
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Simple Assessment Letter:
- Similar to the tax calculation letter, the Simple Assessment letter is sent by HMRC when individuals owe tax that cannot be automatically deducted from their income.
- Individuals might receive this letter if they owe HMRC more than £3,000 or if they need to pay tax on their State Pension.
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Eligibility for Receiving Letters:
- Individuals employed or receiving a pension are eligible to receive either a tax calculation letter or a Simple Assessment letter.
- If registered for Self Assessment, the tax bill is adjusted automatically, and these individuals do not receive the aforementioned letters.
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Reasons for Receiving a Tax Calculation Letter:
- Incorrect tax code placement, often due to inaccurate information about income.
- Transitioning between jobs, receiving payment from both in the same month.
- Starting to receive a pension at work.
- Receiving Employment and Support Allowance or Jobseeker’s Allowance.
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Reasons for Receiving a Simple Assessment Letter:
- Inability to automatically deduct owed taxes from income.
- Owing HMRC more than £3,000.
- Requirement to pay tax on the State Pension.
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Timeline of Letter Issuance:
- Letters are typically sent out between June and the end of November.
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Responsibilities and Actions for Recipients:
- Recipients must pay the owed tax by a specified deadline.
- If a tax calculation letter is not received, individuals who believe they've overpaid should explore the process of claiming a refund.
- If tax is owed and no letter is received, individuals should proactively contact HMRC.
This comprehensive understanding of the tax assessment and refund process empowers individuals to navigate the HMRC system with confidence, ensuring compliance and financial accuracy.
