How a simple tax check could save you £1,000s and it only takes minutes to do

MILLIONS of workers could prevention thousands of pounds by making a elemental taxation cheque up of April.

Anyone employed oregon paid via PAYE is fixed a tax code by their leader via HMRC and it is shown connected your payslip.

This codification dictates however much income tax you wage connected your earnings - truthful it's important to cheque if you're connected the close one.

Being connected the incorrect tax codification could permission you hundreds, if not thousands of pounds retired of pocket.

While it is comparatively straightforward to petition a refund, it's acold much convenient to guarantee you're connected the close taxation codification successful the archetypal place, redeeming you the hassle of going done the claims process.

A Freedom of Information (FOI) petition submitted by The Sun last period revealed that HMRC refunded a staggering £8.3billion successful overpaid taxation during the 2022/23 fiscal year.

On average, each idiosyncratic received £943.

People are often enactment connected the incorrect taxation codes if they change jobs.

At the extremity of each taxation year, HMRC usually sends a missive retired to archer radical if they person overpaid oregon underpaid taxation - these are known arsenic P800 letters.

However, adjacent those who instrumentality the inaugural to cheque their taxation codification earlier these letters are sent whitethorn look delays successful resolving issues, arsenic HMRC often experiences precocious request during this period.

Therefore, ensuring your taxation codification is corrected good successful beforehand of April could prevention you some clip and money.

How bash I cheque my taxation code?

You tin cheque your taxation codification connected your online idiosyncratic taxation account, via payslips, oregon connected the HMRC app.

You tin also, if you've received one, cheque your codification connected a "Tax Code Notice" missive from HMRC.

You'll request your Government Gateway ID and password to log successful to your online idiosyncratic taxation account.

If you don't person this you tin usage your National Insurance number oregon postcode and 2 of the following:

• A valid UK passport
• A UK photocard driving licence issued by the DVLA (or DVA successful Northern Ireland)
• A payslip from the past 3 months oregon a P60 from your leader for the past taxation year
• Details of a taxation recognition assertion if you person made one
• Details from a Self Assessment taxation return (in the past 2 years) if you made one
• Information held connected your recognition grounds if you person 1 (such as loans, credit cards or mortgages)

Why I americium successful the incorrect taxation code?

There are respective reasons wherefore you mightiness beryllium connected the incorrect taxation code, including if you've started a new job and HMRC has not received your income details successful time.

You mightiness besides beryllium connected the incorrect codification if you've started moving for an leader aft being self-employed, oregon you're moving much than 1 occupation astatine a time.

If you are connected the incorrect code, the taxation bureau volition often enactment you connected an exigency taxation codification until you interaction them astir changing it.

Bear successful mind, successful immoderate cases you mightiness person been enactment connected the incorrect taxation codification and beryllium underpaying and beryllium HMRC money.

In immoderate case, you'll privation to close it erstwhile you tin truthful you're paying the close magnitude going forward.

Sarah Coles, idiosyncratic concern expert astatine Hargreaves Lansdown, said: "It’s a comparatively straightforward process and this wealth is rightfully yours, truthful don’t bent astir – marque a assertion arsenic soon arsenic you can."

How to study a incorrect taxation code

If, aft checking, you deliberation you're connected the incorrect taxation code, you tin interaction HMRC to archer them via phone on 0300 200 3300.

This is usually the quickest mode to get a response.

Or, you tin nonstop a missive to the pursuing address: Pay arsenic You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS, United Kingdom.

If you are connected the incorrect taxation codification and person been paying excessively much, HMRC volition alteration it truthful you wage the close magnitude moving forwards.

They should besides reimburse immoderate taxation you've already overpaid.

If you've been underpaying tax, you volition usually person to wage the wealth backmost implicit 12 months.

But, lone if you are earning capable implicit the personal taxation allowance (£12,570) to screen the underpayment and beryllium little than £3,000.

HMRC mightiness get successful interaction with you to archer you you're owed a taxation rebate excessively - they'll bash this via a P800 letter or a elemental appraisal missive successful the post.

But again, a P800 mightiness archer you if you've not paid capable taxation and person to wage it back.

A P800 missive volition archer you if you tin assertion online done the Government's website, successful which lawsuit you'll request your Government Gateway ID and password.

If you assertion the wealth online it volition beryllium sent to your slope relationship wrong 5 days.

You tin besides assertion your refund done the HMRC app.

If your P800 missive states you volition beryllium paid your taxation rebate via cheque successful the post, you should person it wrong 14 days of the day connected your letter.

If you're owed taxation from much than 1 year, you'll get a azygous cheque for the full amount.

There are clip limits successful spot to reclaim immoderate overpaid tax, which is presently 4 years from the extremity of the taxation twelvemonth successful which you are trying to claim.

So, if you're successful immoderate uncertainty you've overpaid tax, you should interaction HMRC arsenic aboriginal arsenic possible.