Checking your tax code is a valuable exercise to make sure the right amount of tax is being deducted from your income.
There are several places you can find your tax code:
- Payslips – weekly or monthly, from your employer.
- Your personal tax account which is managed by HMRC and gives you access to your tax code when you want it.
- The HMRC app like the personal tax account includes your current tax code information.
- P60 – your annual tax summary, from your employer. This will only show your previous tax years tax code.
- P45 – document received from an employer when you stop working for them.
- HMRC – if you cannot find any of these documents, then call HMRC. You will need your national insurance number and they will have security questions for you, before they release your tax code.
- Pension advice slip – for private pension tax codes, this figure is also shown on your P60.
- PAYE Coding Notice or Form P2 – you might get this notice of coding from HMRC in the mail or online around March time. It sets out how much tax your employer will deduct from your wages in the coming tax year.
You can use our free tax code guide to gain further insights into tax codes so you can fully understand their impact on your tax position.
Your current tax code
The government often changes the tax free personal allowance each tax year meaning tax codes change.
This means to get your current tax code your most recent payslip from the current tax year is usually the best place to look.
You can also check your most recent tax code online by using your personal tax account or HMRC smartphone app.
Who has a tax code?
Anyone who is employed under PAYE, either part-time or full-time, and anyone with a private pension. Each job and pension will have its own tax code.
Unemployed, fully self employed and those only getting a state pension will not have a tax code.
Why should I check my tax code?
Your tax code determines how much income tax is deducted from your salary by your employer (or other income source) before you are paid. If it is wrong, then you are either paying too much or too little tax.
It’s recommended to check your tax code at the start of each tax year and if it changes during the tax year. This makes sure that if your tax code is wrong it can be changed sooner rather than later meaning you should pay the correct amount of income tax.
HMRC do their best to keep tax codes accurate however sometimes they don’t have all the information they need or make a mistake. It’s best to work with HMRC to keep your tax code up to date and correct.
How do I check my tax code with HMRC?
HMRC has a user friendly online platform designed to assist individuals in understanding and checking their tax code.
By utilising the “check your tax code” tool available on the .GOV website, you can gain clarity on your tax code and identify any necessary adjustments.
The online tool is easily accessible without requiring users to log into any accounts (so you don’t need to remember any login credentials).
It can be used multiple times at your convenience so you have access whenever changes occur in your tax code or when you simply need to verify its accuracy.
Why does my tax code change?
A tax code can change for many different reasons.
Some of the popular reasons include:
- An increase in the tax free personal allowance in the budget.
- If you change jobs or have more than one form of employment.
- Taxable company benefits like a health scheme or company car need not being included in your tax code correctly.
It’s a good idea to question if a change in your money related circ*mstances will effect your tax code because this can help you stop any future income tax overpayments or underpayments happening in the future.
P2 notice of coding
A form P2 notice of coding is produced by HMRC and tells you how your coding number has been calculated. Not everyone with a tax code will receive a P2 notice of coding.
Not everyone will received a P2 notice of coding from HMRC. If your tax code is just the standard tax free personal allowance you probably won’t get one. HMRC can send you an email to check your new tax code in your online personal tax account instead of posting you a letter.
If my tax code has been wrong can I get a tax rebate?
If incorrect your tax code can result in you overpaying income tax for months sometimes even years.
In cases where your tax code causes you to overpay tax you will receive a tax rebate back from HMRC after the tax code has been changed.
A tax rebate can be repaid for the previous four tax years only so if you think you may have had an inaccurate code in previous tax years you should do something about it as soon as you can.
Who do I contact about my tax code?
If you feel that you need to change or query your tax code you need to contact HMRC (aka the tax office).
HMRC can amend your tax code if necessary and send your income source(s) a new tax code to use straight away.
HMRC have a specific online process to help you with your tax code queries or if you would prefer to call them you can use the phone number 0300 200 3300.
