MARTIN Lewis’ MoneySavingExpert website has warned workers to check their tax codes as a big hike to National Insurance rolls out.
The new tax year started on April 6, and the consumer website said that millions could be on the wrong code and owed money.
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A tax code is a combination of numbers and letters used by employers and pension providers to work out how much income tax you should pay.
Your company will take the money from your pay check before it arrives in your account.
But MoneySavingExpert warned that you could be paying more than you owe in its cost of living survival guide.
“Millions are wrong each year, and the rules say it’s YOUR RESPONSIBILITY to check it’s correct (not your employer’s or HMRC’s),” the consumer site said.
It’s not the only big tax change that is affecting your pay that you’ll want to get clued up on.
The amount of National Insurance you have to pay rose by 1.25 percentage points from April 6.
That means most workers will pay 13.25% tax on their earnings rather than the previous 12% rate.
For some employees, this will add hundreds of pounds to their tax bills.
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How do I check my tax code?
Your tax code will be displayed on your payslip, usually listed near your National Insurance number.
Your company has to provide you with a payslip, so if you’re not sure how to access it, ask your employer for guidance.
You can also use the government’s online tax checker tool to view your tax code.
How do I find out if my tax code is wrong?
You can check if your tax code is correct by using HMRC’s online tool or MoneySavingExpert’s free online tax calculator.
If it’s wrong, contact HMRC to let it know on 0300 200 3300. If it’s right, you don’t need to do anything.
HMRC will write to you or email you if they change your tax code – and they will also write to your employer about any changes too.
Then, your updated tax code should show on your next pay slip.
How do I know if I’m owed a tax refund?
If you are due a tax rebate HMRC will let you know by sending you a letter called a P800 or a simple assessment letter.
P800 letters can also tell you that you haven’t paid enough tax, and you’ll have to repay it.
You will only get a P800 after the tax year has ended – and the letter will arrive between April and November.
This letter will tell you if you can claim online through the government’s website.
If you claim online the money will be sent to your account in about five days.
Or you can wait for 45 days and the government will send you a cheque in the post.
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