Some taxpayers may be receiving an HMRC letter in the coming months (Image: GETTY)
As the end of the tax year approaches, those who are employed or receiving a pension may find themselves on the receiving end of a potentially daunting letter. These letters, known as Simple Assessment Letters or Tax Calculation Letters, are typically sent out between June and March.
Both types of letters clarify whether you are due a refund or need to pay more tax from the previous tax year, in this case, 2023/2024, and outline the steps you need to take. This only applies to people who are employed or receive a pension.
Those registered for Self-Assessment will not receive these letters as their bills are automatically adjusted to account for over or underpayments. The type of letter you receive depends on your circumstances and why your tax was incorrect.
A tax calculation letter, also known as a P800, is often used if you’re owed a refund or need to pay more tax because you had an incorrect tax code, moved jobs and were paid by both in the same month. You can also receive this letter if you started receiving a pension at work or Employment and Support Allowance or Jobseeker’s Allowance.
A Simple Assessment letter is typically dispatched if you owe tax that cannot automatically deduct from your income, or if you have to pay tax on your or owe more than £3,000 in tax. These letters also highlight the deadline for paying this tax, making it crucial for Brits not to disregard this correspondence.
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If you believe the calculations are incorrect, you can contact but will need to detail which amounts you think are wrong and why. If they concur, you’ll receive a new calculation and if they disagree, you’ll usually be informed of the reason.
If you suspect you’ve paid an incorrect amount of tax but don’t receive a tax calculation or Simple Assessment letter by the end of March, you can contact online, via phone or post. Last year, finance experts RIFT estimated that approximately 7.6 million people could be receiving refunds through the P800 letters.
If you’re due a refund, the letter will outline your next steps or you can use the online bank transfer service. You’ll need the reference number from your P800 letter and your National Insurance number, as well as a UK bank account, to access this claim process.
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Alternatively, you can claim a refund through your personal tax account, on the app or by contacting . If you claim online, your refund can be expected in roughly five working days.
However, if you’ve asked the department to send you a cheque, it could take up to six weeks to arrive. If your tax calculation letter states that is sending you a cheque, then there’s no need for you to claim the refund.
You should receive it within 14 days of the date on your letter. More information can be found on the website.