HMRC delays P800 tax calculation letters by up to four months, leaving savers facing potential tax shocks in April.
In an unexpected development, hundreds of thousands of savers might face a surprising tax bill in April as HM Revenue and Customs ( HMRC ) is reportedly delaying the distribution of crucial P800 tax calculation letters by up to four months. These letters inform individuals whether they have overpaid or underpaid tax, which typically arrive by the end of November. However, HMRC has extended this deadline until March 2025.
This news emerged from reports in The Sun newspaper, suggesting a seemingly 'quiet' adjustment implemented under the new Labour Party-led administration, as reported by Birmingham Live. HMRC attributes the delay to a surge in data regarding interest accrued from savings accounts. Steve Webb, former pensions minister and partner at Lane Clark & Peacock (LCP), commented: 'HMRC typically collects underpaid tax through adjustments to your tax code, so it would be a harsh shock if you only learn about a change that will take effect within the next week at the end of March.' Adding to the growing concerns, Laura Suter, director of personal finance at AJ Bell, notes: 'We know that many more individuals will face unexpected tax bills this year as they have exceeded their tax-free savings allowance and will owe tax on their savings interest.' 'However, this latest warning from HMRC means some people won't discover they owe additional tax until just days before the new tax year, when their new tax code will be activated. For many, it will result in a reduced pay packet with very little notice.' 'It appears HMRC has been caught off guard and lacks the resources to handle the substantial increase in the number of taxpayers,' Ms Suter added. 'Despite the government itself predicting a significant rise in taxpayers, it seems it hasn't been able to keep up with the volume and is delayed in informing taxpayers of what they actually owe.' A spokesperson for HMRC stated: 'It's crucial that we collect the correct tax from taxpayers. Due to higher than anticipated volumes, some customers may experience a delay in receiving their P800s, including some PAYE customers.
TAX HMRC SAVERS P800 TAX BILL LABOUR PARTY INTEREST PAYE
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