Errors in HMRC tax statements
Annual review. In September 2014 HMRC started issuing statements of liability (Forms P800) following its annual review of those who receive income taxed under PAYE. Problems showed up almost immediately.
Who’s affected? According to HMRC the problem affects individuals whose employers didn’t follow the proper end of year PAYE procedure under RTI. However, HMRC accepts that the same problem exists where an employer has submitted amended pay and tax figures for 2013/14, but HMRC hasn’t yet processed them. It says that it’s investigating, but can’t yet say how many people were affected.
Is your statement wrong? If you’ve received a 2013/14 P800 statement from HMRC it’s relatively simple to check whether it’s right or wrong. Dig out your Form(s) P60 for 2013/14 and compare the figures of pay and tax with those that appear on the Form P800 . If they don’t agree then it’s very likely that HMRC’s tax calculation is wrong.
Action. HMRC’s advice is that if you think the P800 tax calculation is incorrect and it shows a repayment for which you’ve received a cheque, you shouldn’t bank it. Where the statement shows you owe tax HMRC has promised to correct the statements before issuing any demands. In the meantime you shouldn’t attempt to send payment to HMRC. Tip. We would go one step further and suggest that if the P800 is wrong and you’ve received a cheque, you should return it to the issuing HMRC office with a covering letter which gives details of the discrepancy (see The next step ).
A word for employers. If you’re an employer and are concerned that you might not have followed the proper end of year PAYE procedure, HMRC recommends you take no action to correct matters. It will contact you in the next couple of months if you need to act.
For a sample letter to HMRC, visit http://tipsandadvice-tax.co.uk/download (TX 15.03.01).
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