Thousands of Brits could be victim of a “costly mistake” from HM Revenue and Customs (HMRC) that could result in workers’ salaries being cut.
Adam Bennett, a workplace expert at Digital ID, is urging Britons to check their tax code as soon as possible, reports GB News.
Employees have reported making overpayments each month after discovering they are on the wrong tax code.
Bennett said: “If your tax code results in too much tax being deducted, you might receive a smaller paycheck and could struggle financially until you reclaim the excess tax.
“A wrong tax code could [also] mean you’re underpaying tax, leading to a surprise bill from HMRC later, possibly with interest and penalties. Incorrect deductions reduce your disposable income, impacting your ability to manage expenses or save.”
Tax codes can be inputted wrong when an employee starts a new role. The code determines the amount of tax-free income an individual is entitled to.
The most common tax code for the 2023-24 financial year is “1257L” which means a taxpayer has a Personal Allowance of £12,570.
To check which tax code you are on, check your most recent payslip. They are also on P45/P60 forms, as well as the government’s online portal.
Experts urge Britons to contact HMRC directly if they have any concerns about the level of tax being paid.
