That you have a ‘tax credits over payment’ (been paid too much and may need to pay some back). The reason for this difference in description is that tax is something you pay and that tax credits are a benefit that you claim. In either case, you may owe money to HMRC and will need to do something about it.
Why are people being chased for money they owe to HMRC?
They have not paid the right amount of tax under the Pay As You Earn (PAYE) system, or have fallen behind with Self Assessment (SA) tax payments; or They have claimed tax credits and been paid too much. Confusingly, these two situations are described in opposite ways, that is:
Is there a limit to how much you can pay to HMRC?
There is not a set limit – it depends on HMRC ’s view of what’s reasonable based on payment card industry standards and guidance. There’s a different way to check how much Income Tax you’re paying this tax year. For the 2019 to 2020 tax year and earlier, use the tax checker to work out how much you should have paid.
What should I do if I receive a P800 from HMRC?
The exercise is not meant to apply to anyone who submits self-assessment tax returns. If you normally submit a tax return and have received a P800 calculation, you should contact HMRC. If you have untaxed income, such as rental income, included in your PAYE code, you should take care to check that any estimated amounts have been adjusted.
When does HMRC have to send you a determination?
HMRC must send you the determination within three years of the date the return was originally due to be filed (usually 31 January after the tax year end; so for a 2011/12 tax return HMRC’s ‘final date’ for issuing a determination would be three years from 31 January 2013, which is 31 January 2016).
When do you receive threatening letter from HMRC?
HMRC should have contacted you to inform you of a tax credits overpayment long before collection of a debt is passed over to a debt collection agency. But it is sometimes only at the stage where you receive the ‘threatening letter’ that you realise the seriousness of the situation and take action.
