HMRC is advising individuals to watch out for an important tax letter during the summer months. If you are on PAYE and have either overpaid or underpaid tax for the 2025/26 tax year, you can expect to receive a P800 letter by post.
Various factors can lead to inaccuracies in your tax bill, such as being on an incorrect tax code, changing jobs recently, or starting to claim a pension. Each year following the tax year’s conclusion, HMRC reviews its PAYE records to ensure accurate Income Tax payments on earnings or pensions.
P800 letters will be issued in batches until March 2027, detailing how to claim a refund if you have overpaid tax. Refunds can typically be claimed online or via a mailed cheque. The common tax code for individuals with one job or pension is 1257L, but this may vary. To find your tax code, refer to your latest payslip or P45 if you recently left a job.
If you have underpaid tax, you will owe HMRC the outstanding amount, necessitating prompt resolution to avoid accruing a larger debt. Marc Gill, Director of Personal Tax Operations, emphasized the importance of ensuring prompt refunds for those who have overpaid tax.
In case you receive a P800 letter this summer, follow the provided instructions to claim your refund through GOV.UK or the HMRC app, a quick and simple process that only takes a few minutes.
