It is your responsibility to ensure that your tax code is correct because failing to do so could result in a hefty tax bill at the end of the year, and let's face it, this is somethig nobody wants to be faced with. However don't fear, PayStream are on hand to give you some hints and tips of what to look out for to ensure you pay the correct amount of tax, failing that, our personal tax team are always on hand to help resolve any issues you may encounter regarding your tax code, very quickly on your behalf.
Frequent reasons for error:
Code number reduced because:
- The inclusion of a tax underpayment for an earlier year which is no longer due
- A benefit in kind received in a previous employment has been carried forward by mistake
Code number increased or higher than it should be because:
- A flat-rate expense allowance is no longer due
- Other earnings or pensions have not been included
What to look out for:
Most people in this 2011/12 Tax Year will have a Tax Code of 747L.
If it's any different there should be a plausible reason. Often it's because HM Revenue & Customs are not aware or have not acted upon information about changes in your circumstances.
If your Tax Code has a Week 1 or Month 1 suffix you may not be receiving the full value of your personal allowance.
Some people with multiple sources of income such as part-time earnings or pensions need to ensure that the different Tax Codes sent to them by HMRC are correct otherwise they may face an unexpected end of year tax bill. In particular if you have a BR Tax Code be particularly careful to check whether it's correct – if you are a higher rate (40%) taxpayer you may not be having sufficient tax deducted.
If you're unsure, we can help
Paystream's Personal Tax Team are used to dealing with HM Revenue & Customs and have access to them via a dedicated Agent line meaning that we can resolve any issues around your Tax Code very quickly on your behalf. If you'd like more information on our Personal Tax Team services please contact them via T: 0161 929 6000 or E: firstname.lastname@example.org