2014-15 PAYE TAX CALCULATIONS - OVER AND UNDER PAYMENTS
June 8 2015.


HM Revenue & Customs (HMRC) has started the annual End of Year Reconciliation process – a normal part of the PAYE (Pay as You Earn) system – to check that people have paid the right amount of tax in 2014-15. This has been a key feature of the PAYE system since it was first introduced over 70 years ago.

P800s showing an overpayment of tax will be issued first, followed by a cheque around a fortnight later. The tax payer doesn’t need to do anything and the whole process should be completed by October.

This automated process ensures that those who have had a change in circumstances during the last tax year (2014-15) that was not captured in their tax code, have paid no more or less than they should. Any discrepancy could be because the taxpayer changed jobs, had more than one job for a time, a change of company car or received investment income that was not reported during the year.

The vast majority of PAYE taxpayers will have paid the right amount of tax for the year and will not be contacted by HMRC.

Information on how to check a tax calculation can be found on this webpage; Understanding and checking your P800 Tax Calculation