Have you received a P800 tax calculation from HMRC? Five things you need to check on a PAYE review before you agree to paying more tax

Shoring up your finances is more important than ever with the economic fallout from the Covid crisis set to rumble on for months and even years. The Government will be looking to preserve its tax revenues, and it is up to taxpayers to be vigilant in ensuring HMRC & Customs is not taking more than it should. The tax reviews will be undertaken automatically by HMRC for all PAYE-based taxpayers and should be sent out in the coming weeks and months by letter. Sadly, as with most tax-related matters, yes, things can go haywire when it comes to your tax review, and this is why is pays to be vigilant and let HMRC know about anything you are concerned about.  Expert Mr Salter told This is Money: 'Experience shows that information is often missing in the HMRC calculations and the refunds or liabilities which the Revenue initially assess can be wrong. This can create particular issues for people who, for example, have two jobs during the year or receive both an income from employment and a pension. On the non-employment related income stream front, Mr Salter told This is Money: 'Individuals are taxable in the UK on their investment income and capital gains – subject to certain allowances and reliefs – e.g. the first £1,000 of bank interest is tax free for 20% taxpayers.  'Capital Gains are usually tax free subject to the annual exemption limit of £12,000. For example, HMRC may not have access to foreign bank interest income or all capital gains taxable transactions and the taxpayer has the obligationto ensure such data is provided to the Revenue were appropriate. Another point to be aware of when updating HMRC about your circumstances in light of its tax review concerns business expenses and deductions. Mr Salter said: 'Similarly, HMRC will not know if taxpayers have incurred direct costs on business travel, which has not been reimbursed by the employer or not. Taxpayers making personal pension contributions (subject to annual limits) and gift aid payments receive ‘tax relief’ at 20 per cent on such amounts.  But, they are entitled to tax relief at their top rate of tax.  Mr Salter said: 'Therefore individuals making personal pension payments (either directly or via their payroll deductions), should ensure that the HMRC tax review both correctly captures these deductions (experience shows that gift aid payments in particular are not captured within the Revenue tax reviews), and provides for tax relief at 40% in appropriate cases.