HMRC has introduced a web based platform aimed at aiding taxpayers in deciphering what exactly their tax code means.
Using the online check your tax code tool helps provide clarity on a taxpayer’s specific tax code and highlight the need for an adjustment.
The online tool is on screen and doesn’t need you to login to any accounts to use it (no passwords, usernames or memorable words needed!). It can be used as many times as you want so is there for you whenever your tax code changes or you need to double check it.
Tax codes are issued by HMRC and serve as guidelines for employers to determine the exact amount of income tax that needs to be deducted via the PAYE system.
Variations in an individual’s personal situation can result in changes to their tax code. Should such changes occur HMRC should notify you about a revised tax code either by mail or through your personal tax account.
What do I need to use the HMRC check what your tax code tool?
Before you start get together whatever is relevant for you from the following list:
- Your tax code.
- Your yearly earnings prior to any deductions (including income tax).
- Details regarding benefits provided by your company.
- Total state pension.
Where do I find my tax code?
Your current tax code can be found on a payslip from your employer or statement from your pension provider.
Tax code information can also be found in your HMRC personal tax account or by using the HMRC app.
Why should I check my tax code?
Checking your tax code is encouraged because the PAYE system isn’t perfect and sometimes HMRC needs you to let them know about changes in your circumstances or to highlight an error.
Occasionally tax code inaccuracies occur due primarily from incomplete data received by HMRC from employers or other income sources.
Typical reasons why a tax code may need changing includes when individuals change jobs frequently, start or cease receiving taxable perks (like a company car), or hold more than one job simultaneously.
Our HMRC tax code guide delivers a comprehensive breakdown of what to look out for and what your tax code means.
What should I do if my tax code is wrong?
The check what your tax code means tool gives you guidance on how to update or question your tax code with HMRC.
HMRC provides a check income tax for the current tax year online tool which allows you to report changes and update your tax code online in most circumstances.
To use this service you’ll need a personal tax account which needs you to sign in by using your government gateway user ID and password.
If you haven’t created a government gateway account or personal tax account you can find out more about what to do here.
You can also phone HMRC to query your code and make amendments but only during weekdays.
Downloading the HMRC app is also a good idea if you want some easy and quick online access to your personal tax numbers (like your national insurance number) and income tax information.
