HMRC, or HM Revenue and Customs as it is formally known, helps millions of people with their tax affairs each year. One of the most important issues it deals with is Income Tax – which is paid by swathes of working Britons each year. Income Tax is paid on certain types of income, such as that earned from employment or profits made by the self-employed.
This will be collected on a semi-regular basis by HMRC, with most people paying Income Tax through a system known as Pay As Your Earn (PAYE).
What is worth noting, though, is that sometimes individuals who pay Income Tax through PAYE may end up paying too much in tax.
Of course, an overpayment of tax is something many Britons will want to avoid as much as possible.
At the end of every financial year, HMRC will look into whether certain individuals have underpaid or overpaid tax.
READ MORE: Can Dogecoin reach $100? DOGE traders rally to new highs
These are matters which have to be taken into consideration when it comes to the payment of tax.
Fortunately, though, HMRC usually issues tax refunds automatically for those who are due a repayment.
This usually comes in the form of a letter which is commonly known by Britons as a P800.
A P800 form is used by HMRC to let individuals know they have paid the wrong amount of tax – whether this is too much, or too little.
The letter is likely to show the income a person should have paid tax on, including from pay, pensions, Government payments, and employee benefits.
HMRC has said these should be compared with one’s records to check a tax calculation.
In addition, there is the tax checker tool available via the Government’s official website.
This helps individuals work out how much tax they should have paid within a tax year.
If a person cannot use the online services, HMRC has recommended contacting them via telephone, web chat or post.
Alternatively, individuals may prefer to reach out to an accountant to help them manage their administrative financial needs.