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Tax Information

Human Resources, Payroll & Health & Safety

Tax Information

On this page, you can find out more information about the tax system and calculations.

PAYE personal tax calculations

Most people who pay income tax through Pay As You Earn (PAYE) pay the right amount and won’t get a calculation from HM Revenue and Customs (HMR&C).

However, If HMR&C believe that the tax you have paid is incorrect they will send you a Tax Calculation (form P800).

The calculation will show your total income and the allowances that are due to you for each of the tax years in question. It’s important that you check to make sure you agree with the information included. If you agree with the calculation you do not need to do anything but do it keep it safe.

HMR&C will send notes with the tax calculation form P800; please make sure that you read the notes as these will help you understand what it means.

Why you receive a tax calculation

At the end of every tax year your employer or pension provider sends HMR&C details of how much income you have received and tax you have paid during the year.

If you haven't paid the right amount of tax, you'll receive a tax calculation telling you what HMRC considers the correct amount to be and whether you have paid too much or too little tax. If you think your employer or pension provider has made a mistake in calculating the amount of tax you should have paid, contact HMRC using the telephone number or address shown on your tax calculation.

If you've paid too little tax

Paying back the tax you owe - amounts of less than £2000

If the amount of tax to be paid is less than £2000 HMRC normally includes it in your tax code for the next tax year and asks you to pay it back over one year along with your normal tax deductions for that year. For example, if you didn't pay enough tax in the tax year 2014-15, you'll pay back the amount you owe in the tax year 2015-16, which starts on 6 April 2015.

Paying back the tax you owe - amounts of £2000 or more

If the amount you owe is more than £2000 HMRC will write and tell you how you pay it back.

If you've paid too much tax

If you agree that your tax calculation correctly shows all your income, benefits and allowances you don’t need to do anything but keep it safe. Usually, you'll receive your refund in seven working days.

Further information regarding tax calculations can be found on the HMRC website at the following link: https://www.gov.uk/government/collections/how-to-manually-check-your-payroll-calculations

Warning!

A common scam to be aware of involves an email with a fake HM Revenue & Customs (HMRC) heading. The email asks customers to provide banking details so that a repayment can be issued.

Beware the Inland Revenue would never send out emails requesting this information. These emails are a form of phishing and should be ignored.

If you have any concerns about anything received supposedly from HMRC please telephone their helpline on 0300 200 3300

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