TAX BASICS

When am I Eligible For a Tax Refund Claim?

If you get a job or a pension and pay taxes via the Pay As You Earn (PAYE) system, you may end yourself paying too much in taxes. This is for a number of reasons. However, you can request a tax refund claim with the HMRC, and if they find you have paid more tax, you’ll be issued a tax refund.

When am I likely to pay too much income tax on my job?

If any of the following apply to you, you may have paid too much tax:

  • You started a new job and used an emergency tax code for a while;
  • your employer used the incorrect tax code;
  • when you have only worked for part of the tax year;
  • you worked multiple jobs at the same time;
  • you are a student and only worked during the holidays;
  • other income that HM Revenue & Customs (HMRC) taxed through your tax code has been reduced;
  • you stopped working and had no taxable earnings or benefits
  • Your circumstances altered, such as when you went from full-time to part-time employment.

What exactly is a P800 form?

A P800 form is also known as a tax calculation. It breaks down all your taxable income and paid tax.

Not everyone will receive a P800 tax calculation, but if you’ve filed a tax refund claim, HMRC will send them to taxpayers who have either paid too much (and thus are due to a tax rebate) or too little tax.

What does The P800 include?

  • Total earnings
  • The total amount of tax paid
  • The personal allowance is tax-free.
  • Expenses incurred in that tax year that are tax-deductible

It is critical to understand how your tax calculation works in order to ensure that the information on the form is correct for your specific situation.

How do I complete a P800 form?

In general, HMRC will send you a P800 tax calculation for each tax year in which you have either paid too much or too little tax. To check your tax position, you can use a variety of tax forms, the most common under the PAYE system being a P60 and a P45.

Those without a P800 can find out how much income tax they owe by using this tool.

You have to get in touch with HMRC if you believe you have paid too much tax. You’ll receive a P800 if they approve.

When will my tax refund be issued?

If you’ve requested a tax refund, you have a few options for finding out when you’ll receive your money.

You can also contact HMRC but ensure to have your National Insurance Number in hand before you call. The contact number for HMRC tax refund queries is (0300 200 3300).

Another option is to utilise HMRC’s Where’s My Reply feature to track the progress of your tax refund.

Keep in mind that you’ll be asked to provide information regarding when you first contacted HMRC and how you applied for your refund.

How long does it take for a tax refund to be processed?

This is a frequent concern! The answer varies from 5 days to 8 weeks, depending on a variety of circumstances, such as the method used (such as PAYE or Self Assessment), whether you applied online or on paper, and whether HMRC conducts any security checks during the process.

Sidharth Bharthan Menon
CEO, taxtotal​