HMRC has confirmed that millions of taxpayers will receive a P800 letter in the post this summer if they are on PAYE and have overpaid or underpaid tax for the 2025/26 tax year. The letters, issued in batches up to March 2027, will explain how to claim a refund if too much tax was paid.
How to Claim Your Refund
Marc Gill, Director of Personal Tax Operations at HMRC, stated: “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.”
Understanding Tax Codes
The P800 letter will also clarify your tax code. Common codes include: 0T (when an employee has not provided a P45 or sufficient details, or when Personal Allowance is used up); BR (for a second job or pension); C (main home in Wales); C0T, CBR, CD0, CD1 (Wales variants); D0, D1 (second job or pension); L (standard tax-free Personal Allowance); M (spouse or civil partner transferred allowance); N (transferred allowance to spouse); NT (no tax deducted); S (main home in Scotland); S0T, SBR, SD0, SD1, SD2, SD3 (Scotland variants); and T (HMRC needs to review items with the employee).
