What action does HMRC take?

After the end of the tax year, HMRC review all pensioner tax records and recalculate the overall amount of tax due. With a week 56, most pensioners will have underpaid income tax as they’ve been given an extra amount of tax-free pay in that period. This follows the HMRC process for a week 56 payment.

As pensioners will have underpaid income tax, HMRC will issue a P800 (calculation of underpayment of tax) which details how HMRC have calculated the underpayment. It also gives details of how HMRC will recover the underpayment.