Martin Lewis urges workers to check tax code for simple mistake that could cost you hundreds01/07/2022
MARTIN Lewis has urged workers to check their tax code for a simple mistake that could cost you hundreds of pounds.
If you're on the wrong code you might be paying too much income tax, but you'll be able to claim the money back.
On ITV's Martin Lewis Money Show Live, the MoneySavingExpert founder said millions of employees might be affected.
For example, you might be put on an emergency tax code if you've recently changed jobs, meaning you won't get your tax-free personal allowance.
"Do check your tax code if you're an employee, millions are wrong," Martin said last night.
"You may be paying too much tax."
He gave the advice in a segment on the planned national insurance tax hike in April.
National insurance tax is set to rise by 1.25 percentage points this year, costing workers hundreds of pounds.
Most read in Money
HOLIDAY FIRM FAIL
Teletext Holidays and Alpharooms collapse with thousands owed refunds
HOLIDAY FIRM FAIL
Famous movie house goes on sale – but can you guess which film it is from?
Flat to rent for £875 a month but you'll need to be VERY close to your roommate
My new £1,600 sofa looks like it's years old – and DFS told me to fix it myself
An employee earning £20,000 a year will pay an extra £130 in national insurance, while a worker with an annual salary of £50,000 will take a £500 hit.
Checking you're on the right tax code now will help you claim back any extra you've paid, offsetting some of the impact of the hike.
You can find out what tax code you're on by checking your payslips or asking your company's human resources department.
If you've been charged too much tax you should be able to get a refund, but the rebate method depends on when the extra was paid and your current work situation.
For example, if you're owed a tax rebate from your current job after April 2021, you'll get the money back in your pay check when your tax code has been corrected.
But if it was between April 2020 and 2021, HMRC will post you a P800 tax calculation, explaining how to get a refund.
Workers who paid extra tax between April 2017 and 2020 will have to apply for a rebate online.
But if the overpayment was made before April 2017, you won't be able to get the money back.
Source: Read Full Article