Check annual tax calculations, says LITRG

HMRC has begun sending P800 tax calculations for 2015/16. The process will continue until the end of November 2016. About six million P800s will be issued.

The Low Incomes Tax Reform Group (LITRG) recommends checking the figures to make sure income and allowances are correctly shown especially the new marriage allowance which will be taken into account on P800s for the first time.

Mistakes commonly arise when people have had more than one job or a change in their circumstances during the year that has resulted in the PAYE system collecting the wrong amount of tax.

LITRG has a useful guide aimed at taxpayers for checking these calculations and explaining how to challenge them if the P800 appears to be wrong or if they think they may have difficulty paying the tax shown as due.

Anthony Thomas chairman of LITRG said: ‘Most of the calculations issued...