Martin Lewis urges workers to check the tax code for a simple mistake that could cost you hundreds

MARTIN Lewis has urged workers to check their tax code for a simple mistake that could cost you hundreds of pounds.

If you use the wrong code, you may be paying too much income tax, but you can get the money back.


Martin Lewis shared a tip on his live money show last night

On ITV’s Martin Lewis Money Show Live, the MoneySavingExpert founder said millions of staff could be affected.

For example, you might be put on an emergency tax code if you recently changed jobs, which means you won’t get your tax-free personal allowance.

“Check your tax code if you’re an employee, millions are wrong,” Martin said last night.

“You may be paying too much tax.”

He advised in a segment on the planned National Insurance tax hike in April.

The National Insurance tax is set to rise by 1.25 percentage points this year, costing workers hundreds of pounds.

An employee earning £20,000 a year will pay an additional £130 in National Insurance, while a worker with an annual salary of £50,000 will take a £500 hit.

Verifying you’re on the correct tax code now will help you recoup any extra you’ve paid, offsetting some of the impact of the upside.

You can find out which tax code you belong to by consulting your payslips or by contacting the human resources department of your company.

If you were charged too much tax, you should be able to get a refund, but the method of refund depends on when the extra tax was paid and your current work situation.

For example, if you are eligible for a tax refund from your current job after April 2021, you will get the money back on your paycheck when your tax code has been corrected.

But if it was between April 2020 and 2021, HMRC will issue you a P800 tax calculation, explaining how to get a refund.

Workers who paid additional tax between April 2017 and 2020 will have to request a discount online.

But if the overpayment was made before April 2017, you will not be able to get the money back.

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