Martin Lewis shares tax code advice after man received check for £475 | Personal finance | Finance
On the Martin Lewis Money Show on Tuesday, the financial expert discussed the end of the tax year and what Brits can do to try and save some extra cash. Darren emailed the show to thank the money-saving expert for the ‘tax code tip’ which helped him save £475.
He said: ‘I have just received a check for £475 and they have now changed my tax code so I can get an additional allowance of £1,200 a year.
There are millions of people who get the tax code wrong and pay too much every year because they don’t check.
He urged Britons to check their tax codes.
The money-saving expert said: “[Your tax code] is the little code that tells your employer or pension fund how much tax to deduct from you.
“Currently it will be a number like 1257L – that’s the standard number.
“Millions of them are fake every year and it’s not your employer’s responsibility, it’s not HMRC’s responsibility, it’s your responsibility to check.
“If it’s wrong and you overpay, they’ll owe you money.
“If it’s wrong and you don’t pay enough, you’ll get high demand – neither is particularly good.
“There are free tools online to check your tax code.
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Full-time or part-time employees, who receive a private pension, will have them as they are used by employers or pension providers to calculate the amount of tax that must be deducted from wages or a pension before it doesn’t get paid into someone’s bank. Account.
The figures show how much people can earn tax-free – that is, their personal allowance.
People have to add a zero to get the real number, so 1257 means someone can earn £12,570 a year tax free.
This is the amount a person can earn in a year before their employer has to deduct tax.
The amount of this allowance depends on the person’s income and whether or not there are deductions, for example, work benefits such as a company car, reduced rent or medical insurance.
There are millions of errors in tax code letters, so Brits should never assume their code is correct.
If a tax code is wrong, the first thing to do is tell HM Revenue & Customs (HMRC) that the tax code may be wrong, and why.
Brits can contact HMRC on 0300 200 3300 to speak to a member of their customer service team.
Alternatively, people can contact HMRC online through their personal tax account to let them know that their tax code is wrong.
They can login/create an account using their Government Gateway or Gov.uk Verify ID.
The Martin Lewis Money Show Live is available to watch on the ITV hub.