PAYE checks for last year underway
HMRC has begun its annual End of Year Reconciliation process to check that those people within the PAYE system have paid the right amount of tax for the last tax year ended 5th April 2013.
The Revenue expect around 85% of people to have paid the right amount of tax but for those who have not paid enough or too much then HMRC will automatically send them a tax calculation (on form P800).
Where someone has overpaid tax, they will be sent a cheque, normally within 14 working days from the receipt of the P800 tax calculation.
Those that have not paid enough tax, the underpayment will, in most cases, be automatically collected by way of reducing their 2014/15 PAYE code number. Where this is not possible however HMRC will explain the options available to pay the tax arrears.
The whole automated process is likely to be completed by October 2013.
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