Step 1 - Tax CodeAre you on the correct tax code? Your tax code is listed on your payslip. For the majority of people (especially students) this is quite straight forward. If you do not claim benefits and don't have a company car your tax code should probably be "944L". This means that you have a tax free allowance of £9440. If it is ANYTHING else and do not claim benefits, I suggest you move to step 2. The most common incorrect tax code is "0L" commonly referred as 'emergency tax'. This means that you have a tax free allowance of £0. If this is the tax code you are on, the likelihood is, your tax has been messed up somewhere along the lines. This can happen if you change job or start working after a period of unemployment.
Step 2 - Changing your tax codeThe quickest way to do this, is to ring HMRC. HMRC have two number you can contact them on for income tax. 0845 300 0627 <- this number is the one they want you to ring as it cost a fortune and they make money from you calling it, or you can call this number -> 0135 535 9022. This number is listed as the number you should call if you are outside the UK. This number is a geographical number so is charged at local rates and is free from most mobile phones (HMRC Contact us page).
You will need to pass a security check before the operator will discuss your tax. The information required is listed below. To save you and the operator time, make sure you have this information to hand before calling.
- National Insurance Number
- Full Name (inc middle names)
- Date of Birth
- Current employer
- Name of current employer
- The date you started
- Their PAYE reference
- Your employee number / payroll number