2014-15 PAYE Tax Calculations - over and under payments
08 June 2015
HMRC has begun the annual End of Year Reconciliation process; a normal part of the PAYE system, to check that people have paid the right amount of tax in 2014-15.
HMRC will be sending P800s that show an overpayment of tax first, followed by a cheque around a fortnight later. You don’t need to do anything.
The whole process should be completed in October.
This automated process ensures those who have had a change in circumstances during the last tax year (2014-15) that was not captured in their tax code have paid no more or less than they should. Any discrepancy could be because the taxpayer changed jobs, had more than one job for a time, a change of company car or received investment income that was not reported during the year.
The vast majority of PAYE taxpayers will have paid the right amount of tax for the year and will not be contacted by HMRC.
Information on how to check a tax calculation can be found on this webpage: Understanding and checking your P800 Tax Calculation