HMRC is reviewing millions of PAYE records for the 2025-26 tax year and sending tax calculation letters to people whose records show they may have paid too much or too little tax.
HMRC Reviews Around 45 Million PAYE Records
A P800 tax calculation can result in a refund or a request to pay additional tax. Households receiving one should check the figures carefully before taking action. HMRC carries out annual reconciliations of PAYE records after the end of the tax year.
The review covers around 45 million PAYE accounts, with HMRC checking whether the correct amount of income tax was collected during the 2025-26 tax year.
P800 letters are generally issued between June and November following the end of the tax year. More complicated cases can take longer and may be dealt with into the following March.
A P800 Can Mean a Refund Or More Tax to Pay
Receiving a P800 does not necessarily mean that money is owed to HMRC. The calculation can show that someone has overpaid tax, in which case they may be due a repayment. It can also show an underpayment, meaning additional tax is due.
The letter should explain what HMRC has calculated and what the recipient needs to do next.
Check The Figures Before Claiming or Paying
Taxpayers should compare the information in their P800 with their own records. This can include employment income, pension income, tax already deducted and other relevant income or tax reliefs.
An incorrect or missing figure can change the result of the calculation. Anyone who spots an error should check with HMRC rather than automatically accepting the amount shown on the letter.
Bank Interest Can Lead to Another Tax Notice
HMRC can receive information about interest earned on bank and building society accounts. Some taxpayers may already have received a Simple Assessment for the 2025-26 tax year that did not contain their bank or building society interest.
If HMRC later receives information about that interest, it can issue a second Simple Assessment for the same tax year. The second notice shows the total tax due for the year, including the amount contained in the first notice.
Anyone who has already paid part of the tax should deduct that payment from the amount shown as outstanding on the second notice.
How Tax Refunds Are Paid
The action required depends on what the P800 says. If the letter states that the repayment can be claimed online, taxpayers can use HMRC’s online service, their Personal Tax Account or the HMRC app if they have a UK bank account.
HMRC says an online repayment should normally arrive within five working days. In some cases, HMRC will send a cheque automatically. Where this applies, HMRC says the cheque should normally arrive within 14 days of the date shown on the letter.
Follow The Instructions On Your Own P800
Taxpayers should not assume that their repayment will be handled in the same way as someone else’s. The P800 explains whether a repayment needs to be claimed online or will be sent automatically.
Anyone receiving a letter should therefore check the calculation, verify the underlying income and tax figures, and follow the specific instructions provided by HMRC.
