Every year, HMRC conducts a PAYE End of Year Reconciliation to compare the tax deducted from wages and pensions against the actual tax owed for the year. If there is an underpayment or overpayment, HMRC informs the taxpayer through a P800 form.
When employees receive a P800 indicating an overpayment of PAYE tax, the process for claiming a refund has changed. Previously, if an individual took no action, a Payable Order was automatically issued within 21 days of the P800 notification. However, this automatic process has now been discontinued.
The updated P800 form outlines the new methods for claiming a refund:
- Bank transfer: Taxpayers can log into their Personal Tax Account (PTA) and request an electronic refund directly to their bank account.
- Online service via GOV.UK: Taxpayers can claim their refund by confirming their P800 reference, National Insurance Number (NINO), and date of birth. This option is available only to those with online banking access.
- Payable Order (cheque): Taxpayers can request a cheque by using the online service on GOV.UK and confirming their P800 reference and NINO.
While automatic repayments are no longer issued, and online requests have become the standard method, HMRC acknowledges that certain groups may still require additional assistance. Therefore, telephone requests for repayments will remain available for those who need them.
