PAYE Tax Calculations

From May 2012, HMRC has started to issue P800 tax calculations for the tax year 2011-12. At the end of each tax year, employers and pension providers send details of the salary, pension and tax paid for each individual to HMRC. They use this information to check that the correct amount of tax has been deducted.

Most people have paid the right amount of tax through the Pay as You Earn (PAYE) system and there is nothing more for employers, employees or HMRC to do so that means you do not need to be concerned if you do not get a P800 Tax Calculation.

However, some people may pay too much or too little tax during the year. For example there are people whose circumstances change during the year because they’ve got an additional source of employment or pension income, or who move in and out of work. Those who have paid too much tax will be sent a cheque, in most cases, within 14 working days from the receipt of a P800 Tax Calculation.

If you have paid too little tax, HMRC will usually automatically collect any underpayment through your tax code over the next tax year, from April 2013 as long as you have enough PAYE income from a continuing employment or pension.

For more information, please visit

http://www.hmrc.gov.uk/p800/paye-tax-calcs.htm

For more detailed advice on these issues, contact an accountant or a payroll advisor for payroll services. KVS Accountants provide payroll services to businesses in Battersea, Southfields, Earlsfield, Wandsworth, Chelsea, Parsons Green, Hammersmith, West Kensington and Earls Court

 

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