New research suggests that around 7.6 million people, including many PAYE employees, could be entitled to a tax refund from HM Revenue and Customs (HMRC).
The tax authority is about to start distributing a large number of P800 forms so that people can claim back the money they are owed. The P800 is a tax calculation carried out by HMRC to ensure that everyone pays the correct amount of tax.
If HMRC determines that a person has overpaid or underpaid tax, it will send a letter containing a P800 form. In most cases, the P800 affects employees who pay PAYE tax, rather than the self-employed, Express reports. Finance specialists RIFT carried out the new research and calculated that around 7.6 million people could receive these forms.
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A RIFT spokesperson explained: “RIFT has analysed historical data showing the number of P800 forms distributed by HMRC and used this to calculate a forecast of the number of forms HMRC will send out in 2024, thereby revealing how many people in the UK could be due a tax refund.
“In 2015, HMRC sent out seven million P800 forms. It is estimated that there were over 26.4 million PAYE employees in the UK in that year, so around 26.5 per cent of people were sent P800 forms. It is estimated that by 2024 there will be over 28.5 million PAYE employees. If HMRC sends P800 forms to 26.5 per cent of them, that means almost 7.6 million people can expect to receive one in the post.”
To receive a P800 form, HMRC must have calculated that a person has overpaid or underpaid tax. If HMRC calculates that you have overpaid tax, you will be entitled to a refund. Conversely, if it is thought that you have underpaid, you may have to pay more.
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The spokesperson said: “Please keep an eye on your post. P800 forms are usually sent out during the summer months so HMRC will be preparing to distribute them by post as we speak. The form will tell you whether you have overpaid or underpaid and by how much.
“If you have overpaid, you can claim a refund. The form will tell you how you can claim a tax refund from HMRC. The quickest way to make this claim is via the HMRC P800 refunds website or the HMRC mobile app. However, if you are not offered this option or do not do so within 21 days of the date the form was issued, HMRC will simply send you a cheque by post for the correct amount.
“If you are told you have paid less than your fair share of tax, you will be told how much you owe and you will need to pay this so-called PAYE debt to HMRC as soon as possible. If you can’t pay it all at once, you can spread the payments over time.
“However, if you believe an error has been made and you do not owe any tax, you can challenge the P800 calculation by speaking to the tax collector.”
Bradley Post, CEO of RIFT, said: “HMRC’s PAYE system is an extraordinary tax collection machine, but it is not perfect and millions of mistakes are made every year. However, HMRC’s internal system of checks and balances means it often catches these mistakes in retrospect and does everything it can to ensure people receive the refund or top up what they owe.”
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