HMRC’s annual reconciliation of PAYE for the tax year 2016-17 is well under way. HMRC uses salary and pension information to calculate if the correct amount of tax has been paid. Where the incorrect amount of tax has been paid, HMRC uses the P800 form to inform taxpayers of any under or over payments. The forms currently being sent show HMRC’s tax calculations in respect of the tax year ending 5 April 2017. HMRC expects to send all P800 forms by the end of October 2017.Most P800 forms are generated automatically by HMRC’s computer systems. Taxpayers that have paid too much tax can usually claim a refund online and be paid within 5 working days or will be sent a cheque, in most cases, within 14 working days from the receipt of a P800 Tax Calculation. Those that have paid too little tax will in most cases have the underpayment collected automatically through their 2018-19 annual tax code over 12 months. Where this is not possible, HMRC will contact taxpayers to discuss the available options to pay the tax outstanding. The recovery of tax underpaid can usually be spread over longer periods where financial hardship is demonstrated.Planning note:We would strongly advise any taxpayer that receives a P800 form to ensure that the figures quoted on the form are correct. We would be happy to help you review your P800 form if you have any doubts about its correctness.