Your tax code is used by your employer or pension provider to work out how much Income Tax to take from your pay or pension.
The code is worked out by HMRC and is sent to your employer/ pension provider.
Your tax code will change each tax year (6th April to the following 5th April) usually because the Personal Allowance is increased. But it can also change for other reasons, such as if you start receiving benefits like a company car.
You can find your tax code from:
- payslips from your employer/ pension provider
- P45 from an employer if you leave a job
- P60 from your employer at the end of each tax year
- a PAYE Coding Notice - you may get one by post or you can check using HMRC’s Self Assessment online service if you’re registered
If your tax code is wrong, you could be paying too much or too little tax. You should speak to HMRC and they may decide to change your tax code depending on the outcome. There is a web form you can use for specific tax code queries here.
Alternatively, your local TaxAssist Accountant may be able to deal with the matter on your behalf. Contact us to be put in touch with your local office.
By Jo Nockels
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.