It can often take a while communicating with HMRC to get the bottom of an underpayment or overpayment as we know quite well for dealing with such for contractor and freelancer clients. HMRC have now made the process easier.
HMRC has announced that you will be notified between now and October 2015 if you have underpaid or overpaid your tax during the tax year. This is what is known as P800 Tax Calculation. If you receive one of these, HMRC is advising you to compare the figures with records of your own. These records could include your P60, P11d, bank statements or letters from the DWP. They are also urging you to use the HMRC Tax Checker to check how much tax you should have paid.
HMRC have eased how much work you have to do by notifying how they will collect payments if you have underpaid and that they will send you a cheque if you’ve overpaid. This will reduce the likelihood that you will have to contact HMRC. It is recommended that you should only contact them if you believe the figures you have received are incorrect.
More often than not, if you have underpaid, HMRC will alter your tax code for the following year to collect any money they are owed. This would happen automatically therefore you will not have to do anything nor will you have to contact them. However, if you are now out of work, HMRC are unable to collect through your tax code therefore they will write to you confirming how much you owe and how this can be paid.
If you are found to have overpaid your tax during the tax year, you will receive a cheque within 14 days of receipt of your P800.
Here at Gorilla Accounting, our dedicated specialist contractor accountants will provide tax advice within our all-inclusive premium accountancy package that includes cloud accounting online software
for just £85 + VAT per month!
Get in touch today to arrange a free trial by calling us on 0330 024 0406.