Glossary · UK
What is P800 Tax Calculation?
A letter or online notice HMRC sends to PAYE taxpayers at the end of the tax year showing whether they have paid too much or too little Income Tax.
Full Definition
A P800 is an end-of-year tax calculation that HMRC issues automatically to employees and pensioners taxed under PAYE when its records show a discrepancy between the tax paid during the year and the tax actually due. HMRC reconciles PAYE data from employers and pension providers after the tax year ends on 5 April, and P800s are typically issued between June and November for the tax year just ended. A P800 is not sent to everyone -- it only appears where an over- or under-payment is detected, for example following a change of job, an incorrect or delayed tax code, receipt of taxable benefits not reflected in the code, or multiple sources of PAYE income. If the P800 shows a refund is due, it explains how to claim it: usually online via the Personal Tax Account or the HMRC app, with the refund paid directly to a bank account, or by cheque within around two weeks if no claim is made online. If the P800 shows tax owed, and the amount is £3,000 or less, HMRC usually collects it automatically by adjusting the following year's tax code (coding out) rather than requiring a lump-sum payment, unless the taxpayer asks to pay it directly. Amounts above £3,000, or cases involving Self Assessment, are generally collected by direct payment. A P800 differs from a Self Assessment tax calculation: PAYE taxpayers who are not required to file a Self Assessment return receive a P800 as the mechanism for correcting over- or under-payments, whereas those in Self Assessment reconcile their tax position through the SA302. Taxpayers who believe a P800 is wrong -- for example because it omits a relief or misstates income -- can query it with HMRC or, in some cases, request a revised calculation.