MARTIN Lewis has urged all workers to check their tax code after the first pay day of the new financial year.
The personal finance guru said it’s important to make sure you’re not being overcharged by the tax office.
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If you’ve had a pay packet since April 6, you should check to see if you’re on the right tax code.
If it’s wrong, you might be able to reclaim cash you’ve overpaid.
It could also show whether you’re underpaying tax, to help you “avoid a future nightmare”, Martin said.
You can use MoneySavingExpert’s free tax code calculator to make sure you’re paying the correct amount.
If you know your tax code, you can simply pop it into the calculator to find out how much you should be paying to the tax office.
Workers who are unsure what code they should be on can look at their payslip, P45 or P60 form.
Ask your human resources department for these if you don’t know where to find them.
But if you have just one employer and earn under £100,000, your code is likely to be 1257L.
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Your tax code might be wrong if you’ve recently changed jobs or if you have more than one income.
It can also be affected if part of your salary is made up of company benefits, for example medical insurance or a company car.
People who have just started their first job are often put on an emergency tax code, and will wrongly be charged a higher rate.
How can I claim back overpaid tax?
If you’ve been charged too much tax you should be able to get a refund.
However the rebate method depends on when the extra was paid and your current work situation.
For example, if you’re owed a rebate from your current job from April 6, 2022, you’ll get the money back in your pay when your tax code has been corrected.
Give HMRC a call on 0300 200 3300 to change your tax code.
If the overpayment was between April 2021 and 2022, HMRC will post you a P800 tax calculation, explaining how to get a refund.
Workers who paid extra tax between April 2018 and 2021 will have to apply for a rebate online.
But if the overpayment was made before April 2018, you won’t be able to get the money back.
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