If this takes the individual over the income tax threshold, the HMRC will send a tax bill in the post at the end of the next tax year.
Alternatively, a Simple Assessment letter is issued if you owe tax that cannot be automatically deducted, if the amount owed exceeds £3,000, or if tax is due on your state pension.
If you claim the state pension and income from a private pension, your pension provider will usually take off any tax you owe before paying you.
However, as the state pension cannot be taxed at source, those living solely on the full new state pension are issued with a tax demand directly from HMRC.
A P800, formally known as a tax calculation letter, details any discrepancies in paid versus owed tax.
