To know if your tax code is correct, you can:
- Check your tax code details and why it may have changed by signing in to your HMRC online account or using the HMRC app under the "Pay As You Earn (PAYE)" section. This will show your current tax code and explanations for any changes. Your tax code is also on your payslip, P60, or on letters from HMRC.
- Use online tools like HMRC's tax code checker or third-party tax calculators to understand your tax code and compare it with your income and allowances.
- Ensure HMRC has up-to-date information about your income, benefits, and employment status. If any details are wrong or incomplete, update them using the HMRC online services to get the correct tax code.
- Watch for official notifications from HMRC about tax code changes. Your employer or pension provider should also apply the latest code on your payslip.
- If you suspect your tax code is incorrect (for example, if you changed jobs, have multiple incomes, or receive benefits), check your payslip carefully and consider contacting HMRC for clarification or correction.
Your tax code tells your employer how much tax to deduct. If it's wrong, you may pay too much or too little tax. Checking regularly and updating your records helps ensure the code is correct and you pay the right tax amount.
