PAYE: Are you due a refund?
HMRC should by now have completed all their reconciliations for the 13/14 tax year regarding tax paid via the PAYE system. Reconciliations began in June and were expected to end in mid September.
Following 5 April 2014, HMRC make calculations around salaries, pensions and the subsequent tax paid to calculate any over or under payments of tax.
Typically, if payroll has been worked out accurately over the year then the reconciliation balances, however frequently minor errors (and sometimes major errors) are made that require settlement in future tax years. Form P800 is used to present any over or underpayment:
Refunds are typically issued by cheque within a couple of weeks from receiving the form P800.
Additional tax is usually collected through the tax code in the following tax year, over 12 months. Unless it is a large sum in which case HMRC may request that it is settled sooner and negotiate terms.
It is very important to always check any P800 form to ensure it is correct as sometimes HMRC get it wrong too.
Also, read and download the Figurit mini guide to PAYE commitments
to extend your knowledge of the payroll system, including important information regarding deadlines and penalties.
Figurit can help shed any light if you are unsure and point you in the right direction if you think you are due a refund but haven’t received a cheque yet. Call us on: 020 7376 9333