HMRC is advising millions of individuals to watch out for an important tax notification this summer. If you are under PAYE and have either overpaid or underpaid taxes for the 2025/26 tax year, you will be receiving a P800 letter by mail.
Various factors can lead to discrepancies in your tax bill, such as being on an incorrect tax code, recent job changes, or starting to receive a pension. Annually, after the tax year concludes, HMRC reviews its PAYE records to ensure accurate Income Tax payments on earnings or pensions.
P800 letters, distributed in batches until March 2027, will detail the process for claiming a refund if you have overpaid taxes. Refunds can typically be claimed online or via a check sent through mail. The common tax code, 1257L, applies to individuals with one job or pension, although it may not be universal. You can locate your tax code on your latest payslip or P45 if you recently left a job.
In cases of underpaid taxes, you will owe HMRC the outstanding amount, necessitating prompt resolution to prevent increased liabilities. Marc Gill, Director of Personal Tax Operations, emphasized the importance of ensuring timely refunds for those who have overpaid taxes.
If you receive a P800 letter this summer, the advice is to follow the instructions and claim your refund through the GOV.UK website or the HMRC app, a quick and simple process.
