Time is running out for millions of UK workers to correct their tax codes and potentially reclaim thousands in overpaid taxes. HM Revenue & Customs (HMRC) is urging employees to check their PAYE tax codes before the April 5 deadline.
Why Your Tax Code Matters
Your tax code determines how much income tax gets deducted from your wages each month. Shockingly, HMRC estimates that thousands of workers have incorrect codes, leading to either underpayment or - more commonly - substantial overpayment.
How to Check Your Code
You can find your tax code on:
- Your payslip
- Your P45 or P60 form
- The HMRC app or online account
Common errors include codes that don't reflect your personal allowance, work benefits, or pension contributions.
The April 5 Deadline Looms
After the current tax year ends on April 5, reclaiming overpaid tax becomes significantly more complicated. Those who've overpaid must act now to ensure they receive what they're owed through payroll adjustments rather than waiting for a refund.
Expert tip: If your code ends with 'W1', 'M1' or 'X', you're likely on an emergency tax code and probably paying too much.
What to Do If It's Wrong
- Contact HMRC immediately via their online service or helpline
- Provide details of any income changes or allowances you're entitled to
- Request a revised tax code notice to give to your employer
With wages squeezed by the cost of living crisis, ensuring you're not paying a penny more tax than necessary has never been more important.
