13 Sep Are HMRC Calculations Correct? A Guide by Quick Book Accountant
HMRC and PAYE don’t submit a tax return as per a qualified Quickbook accountant. Each year HMRC undertakes a PAYE reconciliation for employed individuals. Check that you’ve paid the correct amount.
Where it has not, HMRC will send out either a P800 tax calculation or a PA302 simple assessment. A QuickBooks accountant dives in deeper.
P800 tax calculation- Quickbook Accountant Guides
Issue a P800 tax calculation if an employee has paid too much tax. If they’ve paid too little and the tax underpayment through an adjustment to their PAYE tax code as per a qualified QuickBooks accountant.
There are various reasons why a person who pays tax under PAYE may have paid the wrong amount of tax. This may be because of:
They finished one job and started a new one for both jobs in the same tax month as per an average QuickBooks accountant;
- They started receiving a pension at work; or
- They received Employment and Support Allowance or Jobseeker’s Allowance (which are taxable).
P800 calculations for 2018/19 are proceeding out by HMRC from June to November 2019. Let a quick book accountant help you in figuring this out further
If the P800 shows that there has been an overpayment regarding tax, it will say whether you get a refund online. Complete this through the personal tax account.
Get help from a QuickBooks accountant to know where a claim takes place online. The money should be sent to the claimant’s bank account within 5 working days.
HMRC will send out a cheque if the claim does not take place within 45 days of the date on the P800. HMRC will also send out a cheque if an online claim is not possible.
PA302 simple assessment
Instead of a P800 tax calculation, an individual may instead receive a PA302 simple assessment. This is effectively a bill for the tax that has been underpaid. HMRC may issue a simple assessment if:
- The tax that cannot be taken from the individual’s income;
- The individual owes HMRC tax of more than £3,000; or
- They have to pay tax on the State Pension.
Pay a simple assessment bill online.
Check your Calculations
Do not simply assume that it is correct – HMRC can and do make mistakes.
It’s prudent to check that their figures are correct as per our QuickBooks accountant.
Check HMRC’s figures against your records, such as your P60, your bank statements, and letters from the DWP.
Check that employment income and any pension income is correct, and that relief has for expenses and allowances.
HMRC has produced a tax checker tool (available on the Gov.uk website at www.gov.uk/check-income-tax). This is for the amount of tax that should have been paid.
You’ll need to contact HMRC if you think that your tax calculation is incorrect. This can be done by phone by calling 0800 200 3300.
If you do not agree with your simple assessment, you have 60 days to query this with HMRC by phone or in writing. The simple assessment letter by a QuickBooks accountant explains how to do this.