Paying too much tax? Check!
Have you checked your wage slip recently? Do you have ANY idea what the tax code means? Did you know IT COULD BE WRONG?! which means you could be paying too much or too little tax - Oh No!
Your tax code is issued to your employer by HMRC and lets them & you know how to calculate the tax you need to pay via Pay As You Earn (PAYE).
It's fairly easy to check … the most common tax code for 2019-2020 is 1250L. The 'L' shows that you have the basic personal allowance of £12500 (i.e., you don't have to pay tax on the first £12500 you earn). The 'L' also shows that you are a person born after April 5th 1948 and that you have one job and no untaxed income, unpaid tax or taxable benefits.
If you have a different combination of letters & numbers … take a look here: tax code letters. It's worth checking!
If you think that your tax code is wrong, you need to contact HMRC to discuss it. It's up to you to correct this, not them. And even though it may be their error, you will still have to pay any tax that has not been collected … or (on the bright side) you could be due a tax rebate! Here's how you can get in touch with them: How to contact HMRC
Full details of Tax Codes can be accessed by clicking here
As ever, if you have a questions about this or anything else financey, please contact Money Bee via the 'Get In Touch' tab above, or by emailing firstname.lastname@example.org
All details are correct at tome of writing: 24th April 2019