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May 2024 | It's important for everyone to review their tax code now

HMRC issues updated tax codes at the beginning of each tax year in case there are alterations in the Personal Allowance, changes in circumstances such as a salary increase, or for individuals who are newly accessing their pensions.

It's important to check that your tax code is correct, as any mistake early in the year could mean paying too much or too little tax going forwards. Either way, the sooner you get this sorted out, the better, as you don't want to be owed money by HMRC, and you certainly don't want to owe unpaid tax.

HOW CAN I CHECK MY TAX CODE?

There are various ways you can check your tax code, including speaking to your employer or your HR department, if your company has one. You can also look online to see what all the elements of the tax code mean and identify whether you think these have been applied correctly to you.

For example, 1257L is the code that most people will have if they have a job or a pension. This represents the £12,570 Personal Allowance that each person has - unless it is eroded away for those who are in the highest tax bracket. The 'L' denotes that you are entitled to the full tax-free Personal Allowance.

The numbers in the tax code indicate the amount of Personal Allowance you have, while the letters represent a variety of things. You can find a full list on Gov.uk. But if you would prefer to get an expert to check it for you, then get in touch with your accountant.

LET US HELP YOU

If you require assistance with verifying your tax code, feel free to contact us on 01709 327 215 or via email at info@branagans.co.uk.

We'll gladly provide the support and guidance you require.

01709 327 215

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