HMRC has urged millions of people to watch for an important tax letter this summer. A P800 letter will be sent to PAYE taxpayers who have overpaid or underpaid tax for the 2025/26 tax year.
Why You Might Get a P800 Letter
Reasons for an incorrect tax bill include an incorrect tax code, changing jobs, or starting to claim a pension. Each year after the tax year ends, HMRC checks PAYE records to ensure the correct amount of Income Tax has been paid on earnings or pensions.
The P800 letters, issued in batches up to March 2027, explain how to claim a refund if you have overpaid. Refunds can typically be claimed online or by waiting for a cheque in the post.
Understanding Your Tax Code
The most common tax code is 1257L for those with one job or pension, though not everyone is on this. To find your tax code, check your latest payslip or P45 if you recently left a job. If you have underpaid tax, you owe HMRC and should sort it out promptly to avoid a larger bill.
Official Advice
Marc Gill, Director of Personal Tax Operations, said: “Every year millions of people pay exactly the right amount of tax through PAYE without any action needed on their part. But for those who have paid too much, we want to make sure they get their money back as quickly and easily as possible. If you get a P800 letter this summer, follow the instructions and claim your refund through GOV.UK or the HMRC app – it only takes a few minutes.”
Common Tax Codes Explained
- 0T – When an employee has not provided a P45 or enough details, or when their Personal Allowance is used up.
- BR – For a second job or pension.
- C – For an employee whose main home is in Wales.
- C0T – When a Welsh employee lacks details or has used up their Personal Allowance.
- CBR – For a second job or pension (Wales).
- CD0, CD1 – For a second job or pension (Wales).
- D0, D1 – For a second job or pension.
- L – For an employee entitled to the standard tax-free Personal Allowance.
- M – For an employee whose spouse or civil partner transferred some of their Personal Allowance.
- N – For an employee who transferred some of their Personal Allowance to their spouse or civil partner.
- NT – No tax deducted.
- S – For an employee whose main home is in Scotland.
- S0T – When a Scottish employee lacks details or has used up their Personal Allowance.
- SBR – For a second job or pension (Scotland).
- SD0, SD1, SD2, SD3 – For a second job or pension (Scotland).
- T – When HMRC needs to review some items with the employee.
