1. Why do I need to check my tax code?

Your tax code tells your employer how much tax to take off your wages. If your employer uses the wrong code, they’ll take the wrong amount of tax…….and you’ve guessed it, it’s nearly always too much! HMRC sends out a new tax code at least once each year, but sometimes several times a year. Your employer has to use the tax code they’re sent, and they’ve no idea if it’s right or not. Ultimately it’s your job to check your employer’s got the right code and taken the right amount of tax. It’s a common mistake to believe that because “I’m on PAYE”, your employer sorts your tax and takes the right amount. Over 1 in 3 of the tax code reviews we complete end up with our customers getting a tax refund, so it’s clear every taxpayer should check their tax code.

Categories: FAQ