Martin Lewis warns workers to check their tax code to avoid losing money
Martin Lewis is urging all workers to check their tax code after the first pay packet of the new fiscal year.
The finance guru said it’s important to check you’re not being overcharged by the tax office.
If you’ve had a payslip since April 6, you need to make sure you’re on the correct code, as you may be eligible for a refund.
Why do I need to check my tax code?
If your tax code is wrong, you may be able to recover the money you overpaid, or it could indicate that you are paying less tax.
Your tax code may be wrong if you recently changed jobs or have more than one income.
It can also be affected if part of your salary is made up of benefits, such as medical insurance or a company car.
People who have just started their first job are often put on an emergency tax code and will be wrongly charged a higher rate.
How can I check that I am paying the correct amount of tax?
You can use MoneySavingExpert for free tax code calculator to ensure that you are paying the correct amount.
If you know your tax code, enter it into the calculator to find out how much you should pay to the tax office.
Workers who do not know which code they should be on can consult their payslip, their P45 or P60 form, or ask your human resources department if you do not know where to find them.
If you only have one employer and earn less than £100,000 your code will probably be 1257L.
How can I claim the overpayment of tax?
If you’ve been 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 owe a rebate on your current job from April 6, 2022, you will get the money back on your pay when your tax code has been corrected.
You can call HMRC (HM Revenue and Customs) on 0300 200 3300 to change your tax code.
If the overpayment occurred between April 2021 and 2022, HMRC will send you a P800 tax calculation, explaining how to get a refund.
If the overpayment was made before April 2018, you will not be able to recover the money.