HMRC warning to check codes on letters as workers are owed £700 each – check if you're affected
TAXING TIMES HMRC warning to check codes on letters as workers are owed £700 each – check if you're affected
BRITS are being urged to check their tax codes immediately as thousands could be due a £700 refund from HMRC.
It comes as the May 31 deadline has passed for employers to issue P60 forms – a crucial document that confirms how much tax you've paid in the last financial year.
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Thousands could be owed £700 from HMRC
Credit: Alamy
But tax experts are warning that many workers could be on the wrong tax code without even knowing it, potentially costing them hundreds of pounds.
One in three Brits has been on the wrong tax code at some point, with average overpayments hitting a hefty £689, according to research by Canada Life.
The blunder means HMRC could be sitting on billions in overpaid tax and the only way to get it back is to check your details and flag it.
Taxpayers should double check the 'final tax code' on their P60 that's the string of letters and numbers near the top of the form.
Codes like "BR", "D0", or "D1" should raise a red flag.
These mean you may have been taxed at a flat rate with no tax-free allowance.
Anyone who stayed with the same employer up to April 5 should have already received their P60, either in the post or digitally.
And while it may be tempting to toss it aside, it's an important piece of paperwork.
Not only is it used to claim tax rebates, it's also essential for applying for tax credits, benefits, loans, or even a mortgage.
If you think your code is wrong, or if something doesn't look right on your payslip, it's time to act.
Clampdown on tax dodgers is confirmed by Rachel Reeves in bid to fill spending black hole
How to check your tax code
You can check your current tax code by logging into your personal tax account online, using the HMRC app, or digging out your latest payslip.
You may also have received a Tax Code Notice from HMRC in the post, so it's worth checking any recent letters too.
If the numbers don't add up, contact HMRC directly.
You can call them on 0300 200 3300 or write to: Pay As You Earn and Self Assessment, HMRC, BX9 1AS.
Those who've overpaid could see a refund land in their bank within five days once their claim is processed or receive a cheque in the post within two weeks.
But it's not always good news, some may find they underpaid tax and owe HMRC money.
If that's the case, most will be asked to repay it gradually over 12 months.
If you're owed money, you may also receive a P800 letter or a simple assessment telling you how much you're due and how to claim it.
There's a four-year limit on claiming back overpaid tax, so if you think you've been overcharged, don't delay.
Whether you're a full-time employee, working multiple jobs, or have just switched roles, it's worth double checking your code because a five-minute check could leave you hundreds better off.
The Sun has approached HMRC for comment.
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