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Every 12 months at the tax year end, HM Revenue & Customs (HMRC) reconciles the records of all taxpayers to make sure that the correct amount has been paid. The vast majority of people who pay tax will have contributed the correct sum. Others may have overpaid or underpaid, in which case they will either receive a refund or will have to settle the amount owed to HMRC.

What is a P800?

The P800 is a calculation that indicates your total income and the amount of tax that has been paid. The form will also show the personal allowances you received during the year, and any expenses that have been claimed. You will usually only receive the P800 calculation if the amount of tax paid is incorrect.

What to do if you owe HMRC

If the P800 calculation shows that you owe some tax, you must check all the figures to make sure that they are correct. You will be able to check income details against pay slips, as well as the form P60, P45 and other documentation you will have retained during the year. If any details are incorrect, query them immediately with HMRC.


If the amount of tax you owe is £3,000 or below, you will be able to include the amount in your next year’s tax code. This will allow you to spread the repayments over a year. If you owe more than £3,000 or you want to pay the amount in full, you will make a voluntary direct payment. HMRC will send you a payslip that you must complete before returning it, along with payment, to the address shown on your tax calculation.

What if you have paid too much?

If the P800 calculation shows that you have paid too much tax, you will be sent a cheque by HMRC to refund the amount overpaid. Once again, you must check all figures to ensure they are correct, and that you have indeed paid too much. If you receive overpaid tax from more than one year, it will be paid as one lump sum rather than separately for each year.

If you don’t receive a calculation but believe that you have overpaid tax, you can ask HMRC to check your details for that particular year. If there’s any doubt about the calculation, consult a professional who can explain the form to you.

About The Author

Karl Bilby

We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!

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