You could owe the taxman hundreds of pounds by entering the wrong code on your pay slip.
But you can claim the cash by checking that you are paying the right amount of tax.
This comes at a time when Britons who are committed to a refund will see HMRC letters confirming payment for the land through a letter box this month.
Some tax codes have changed this tax year, so it’s a good idea to figure out what they mean – otherwise it might be out of your pocket.
If you’ve recently moved jobs, haven’t given your new workplace your P45, or haven’t filled out the Starter Checklist form, you may know that you’ve been put on the wrong code.
If this happens, the tax office will automatically put you on the emergency tax code until you contact them to tell them otherwise.
We show you how to check your tax code – and how to claim a refund for any debts you owe.
What is a tax code?
A tax code is usually a combination of numbers and letters and is used by employers and pensioners to determine how much income tax you pay.
Your company will take money from your salary before it gets into your account.
Most of us who are basic taxpayers (because we earn less than Rs. 37,500 per year) can earn Rs. 12,500 between April 2019 and April 2020 before paying taxes. This is called your personal allowance.
The standard tax code for base rate taxpayers is 1257L – you can find out what your personal allowance is by multiplying it by 10.
So you can earn 12,750 without paying tax on it.
How do I check my tax code?
While most of us will be on the taxpayer’s basic code, it’s worth checking to see if you’re right.
The Brits will have received letters in the post from February informing them of their tax code for the 2021/22 tax year.
This year’s tax year began on April 6, 2021 and will continue until April 5, 2022.
But if you haven’t received a letter, or can’t find where it is, there are several ways you can check what your tax code is for the current tax year.
Your tax code will be displayed on your pay slip, usually next to your National Insurance number.
Your company has to provide you with a pay slip, so if you are not sure how to access it, ask your employer for guidance.
You can also use Government’s online tax checker tool To view your tax code.
How do I know if my tax code is wrong?
If this is incorrect, contact HMRC at 0300 200 3300. If this is true then you don’t have 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.
Then, your latest tax code should appear on your next pay slip.
How do I know if I owe a tax return?
If you are a tax breaker, HMRC will notify you by sending a letter P800 or a simple assessment letter.
The P800 characters can also tell you that you haven’t paid enough taxes, so don’t lift your hips when it comes through your letterbox.
You will receive the P800 only after the end of the tax year – and this letter will not normally arrive until September.
That means you should keep an eye on your letterbox – it may come soon.
This letter will tell you if you can make a claim online through it. Government website
If you make an online claim, the money will be sent to your account in about five days.
Or you can wait up to 45 days and the government will send you a check by post.
How much can I get?
How much you can get back depends on what tax code you were charged on, your salary and how much tax should have been collected.
But in some cases, you may owe hundreds – or even thousands of pounds.
The increase in national insurance adds hundreds of pounds a year to the UK’s tax bills.
Tax increases are usually announced in the chancellor’s annual budget, with Rishi Sink announcing a 25 percent increase in corporation taxes in March.
The March budget followed several emergency budgets of Rishi Sink to get the country infected with the corona virus epidemic.
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