What is the current P800 system?
You get a P800 form if you are owed a tax rebate through PAYE. You will get a P800 for each tax year you are owed a rebate. Repayments are automatically paid to taxpayers within 14 days of their P800 being issued.
Who do the P800 changes affect?
The changes affect all taxpayers in different ways. Taxpayers who have a ‘Digital Personal Tax Account’ with HMRC can benefit from the proposed improvements to the payment system because they can get their money more quickly.
What will happen now?
Those who have a Digital Personal Tax Account will be able to receive their P800 repayments within 3-5 days. This is because they will have the facility to give their bank details through their online account and get a simple bank transfer. Taxpayers will need to actively log on to their account and enter their details after they get their P800 notification. You can also organise this with HMRC over the phone.
If you would rather stick to the postal system, HMRC have now given themselves 45 days in which to get your refund to you.
When does the P800 switch over happen?
HMRC have been testing their new process since the beginning of August and have given 22nd August as the roll-out date.
Is this an improvement?
HMRC see this as another way to make the tax repayment system more efficient by returning taxpayers’ money to them more quickly. The Institute of Chartered Accountants in England and Wales reportedly fear that this does not constitute a better service; as a previously automatic step in the process now requires active involvement by every taxpayer.
