PAYE Reconciliations.

If most of your income is taxed under PAYE (Pay As You Earn) you may soon receive a reconciliation of the income tax you have paid compared to the amount that was due to be paid for 2013/14.

This calculation arrives on a form P800, which should be checked very carefully for errors and omissions. If mistakes are missed they can be carried forward for several years, resulting in escalating amounts of tax over or under-paid.

For example the High Income Child Benefit Charge (HICBC) may be due where you earn over £50,000 and your family receives child benefit.

But the HICBC will not be reflected in the P800 calculation, as HMRC can’t accurately match child benefit claimants with the high earners in those families. If you believe you are due to pay the HICBC to claw-back the child benefit received, you need to register for a self-assessment and complete a tax return. We can help you with that.

Other common errors on the P800 arise from the changing value of taxable benefits, varying pension contributions, and estimated amounts of other income included in your PAYE code such as rents or interest.

If you have paid the right amount of tax under PAYE for 2013/14 you won’t receive a communication from HMRC.

If you have overpaid tax you should receive a cheque from HMRC within two weeks of the issue of the P800. Don’t respond to emails promising a tax repayment – those are scams.

If the P800 shows you owe tax, that amount will normally be collected through your PAYE code for 2015/16. We can help you challenge the calculation if you think it’s wrong, but we will need to see the P800 you have received, as HMRC don’t send us a copy.

News / Blog

16th
November

The Paradise Papers Leak Sparks Debate About Tax … Again

The Paradise Paper leaks last week have have reignited a public debate again about what is permitted in reducing tax…

8th
November

VAT Threshold Cut Proposed in Latest Report Could Spell Additional Pain for Stockport Small Business

Stockport small businesses face being brought into VAT if the government accepts the Office of Tax Simplification VAT reforms that…

1st
November

Three More Autumn Budget Predictions

Like many in the financial world, we are preparing for first full autumn budget. This week, we are looking at…

1st
November

Using the IHT gift exemptions

As Benjamin Franklin observed in 1789 ‘In this world nothing can be said to be certain, except death and taxes.’…