If you believe your tax code is wrong you should contact HMRC who will issue your employer with a revised tax code as required. This can be done by phone – 0300 200 3300 – or on-line . Almost all employers will now be operating PAYE in Real Time.
What does it mean if my tax code is wrong?
If your tax code is wrong, this could mean you are paying too much tax or not enough. There are lots of free online calculators you can use to check your code. When you enter your tax code you’ll be shown how much tax you should be paying, and you can compare this with the actual amount you have paid.
What happens if you have the wrong tax code?
Fortunately, if they have been using the wrong code in the past 4 years and you have paid too much tax, HMRC will refund your money. If you know what you are doing, you can organise this yourself.
Who is liable for the error in my tax code?
What may have happened is that if the code drops during the tax year you will go on a month 1 basis, so they will not collect under paid tax from prior to the change, only going forward. Often HMRC will code this out going forward, unless it is too big – is there an adjustment for this on your 2012/13 coding notice?
What happens if I pay too much tax to HMRC?
Fortunately, if they have been using the wrong code in the past 4 years and you have paid too much tax, HMRC will refund your money. If you know what you are doing, you can organise this yourself. Alternatively, you can let a tax code expert handle the whole exercise for you.
Can a tax refund company change your tax code?
Thanks to David Malik-Davies from The Tax Refund Company for all the tax tips. Depending on your circumstances, HMRC can change your code so you pay less tax. That gives you extra money in your take-home (net) pay, which can be used to help cover certain costs. However, it’s up to you to ask HMRC to do this.
