Last month those who receive benefits in kind from their employer are likely to have received new tax codes. If you have more than one source of income – such as a second job or additional pensions – you may get a separate code for each one.
These tax codes determine the amount of tax you are liable to pay, and mistakes by HMRC about people's income and tax allowances are common, which means some people will end up with the wrong code.
If you’ve recently received a new tax code it’s important to check that it’s accurate and that you are not paying too much – or too little – tax.
Your tax code is likely to have changed if you have recently changed jobs, being given new benefits in kind such as a company car or other work benefits, started drawing your pension, or have a new source of income.
If you’re not sure where to start with checking your tax codes, give Clayton & Brewill a call. We recently helped someone to recover hundreds of pounds of tax that had been mistakenly collected by HMRC due to an incorrect tax code.