Hey folks, make sure to check your payslip for a six-digit code that could mean cash back from HMRC. Don’t miss out!
London: Workers are being reminded to look at their payslips this week. There’s a six-digit code that might mean you’re owed some cash back from HMRC.
These tax codes show how much income tax you should be paying. With the self-assessment deadline coming up on Friday, it’s a smart time to check your tax situation.
If you’re on the wrong tax code, it can really add up. Some folks might be overpaying by thousands, but the good news is you can get that money back from HMRC.
Last year, a survey found that 6% of taxpayers were on the wrong code. That’s a lot of people! And those who found out were overpaying an average of £689 each.
Surprisingly, nearly one in five adults in the UK have never even checked their tax code. And those who do check, usually only do it once every 16 months.
Most people check their tax code for no real reason or just out of habit. Some do it after changing jobs or because they’ve had issues before.
It’s a bit worrying that less than half of adults know if their tax code is correct. And almost 40% don’t even understand what their tax code means!
Many people also don’t know how to claim back overpaid tax. While HMRC might let some people know about rebates, it’s really up to you to claim it.
John Chew from Canada Life mentioned that the most common tax code is 1257L. This code means you can earn £12,570 a year before paying any income tax.
Your tax code can change if you get benefits from work, like a company car. HMRC might also adjust it if you owe them tax.
Understanding your tax code is super important. If it’s wrong, you could end up paying too much or too little tax. So, if you haven’t checked yours lately, now’s the time!
If you think your tax code is off, reach out to HMRC directly. Your employer can’t do it for you. You can check your info online to make sure it’s up to date.
HMRC might already know if there’s an issue. If so, you should get a tax calculation letter or a Simple Assessment letter by the end of the tax year.
Just a heads up, there are time limits for claiming back overpaid tax—four years from the end of the tax year. So, if you’re unsure, contact HMRC sooner rather than later.
Different codes mean different things. For example, the T code means your personal allowance includes other calculations, while 0T means your allowance is used up.
Code L shows you’re entitled to the standard personal allowance, and code M means you’ve received part of your partner’s allowance.
On the flip side, code N means you’ve transferred part of your allowance to your partner. Codes like BR, D0, and D1 show different tax rates.
If you want to check your code, you can do it through the HMRC app or online. Just remember, you’ll need to create an ID if you don’t have one already.
