We are fast approaching the end of the 2013 tax year and many of you may be receiving a new tax code through the post from HMRC, but what is a tax code and how do you know if it is the right one for you?
A tax code is the method by which HMRC taxes your wages and private pensions, currently the taxman is estimating your circumstances and issuing tax codes for both the next tax year and last minute adjustments for this tax year, so you may actually receive more than just the one code in the post – check the dates they refer to carefully.
It is important to check your tax code is right because if you do not complete a Personal Tax Return then a correct tax code is the only way to pay the correct amount of tax.
- Have you the right tax free allowances for your age and income levels?
- Are any adjustments correct, justified or desired?
You should object to HMRC if your code is wrong and all adjustments are voluntary i.e. you could just object on principle and complete a Personal Tax Return to get your tax right. Further details on how to object can be found on the Gov.UK website www.gov.uk/reporting-your-tax-code-as-wrong
We are happy to help check codes but please note:
- HMRC no longer forward copies to agents direct, so do forward yours along with any calculations included on supplementary pages.
- If the code is wrong then it is your responsibility to correct it NOT HMRC’s.