Now we are in the new tax year, it may be a suitable time to check your tax code. Millions of employees are probably not on the tax code that is appropriate to them.
If your annual earnings are under £100,000, then you are likely to be entitled to an amount of free pay of £12,570. This is represented by a tax code of 1257L.
Some couples where they qualify.may share an amount of 10% with their partner.
Others may have benefits or prior year tax debts which can impact their tax code making the free pay entitlement included in their tax code lower.
Many new employees don’t realise that they should have completed a starter checklist or didn’t have or forgot to provide their new employer with form P45 from their old employer before their first new pay day. They will have been placed on a 0T tax code and have no tax free pay and are likely to be paying too much.
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. HM Revenue and Customs (HMRC) will tell them which code to use.
Need to check your tax code?
It is important you to check the tax code is correct so you pay the right amount of tax.
You can view your income and tax code on the HMRC App.
Download the HMRC App from the App Store or use the QR code above to download
If you sign in to check your tax code online, you can also find your tax code for a previous tax year.
To found out more about tax codes and what they mean:
What can the Personal Tax Account Do?
You can:
- check your Income Tax estimate and tax code
- fill in, send and view a personal tax return
- claim a tax refund
- check your income from work in the previous 5 years
- check how much Income Tax you paid in the previous 5 years
- check and manage your tax credits
- check your State Pension
- track tax forms that you’ve submitted online
- check or update your Marriage Allowance
- tell HMRC about a change of name or address
- check or update benefits you get from work, for example company car details and medical insurance
- find your National Insurance number
- find your Unique Taxpayer Reference (UTR) number
PAYadvice.UK 14/4/2023
