How to Check or Get a Copy of Your Tax Code Notice
- MAZ
- Aug 12
- 21 min read
Updated: Sep 11
The Audio Summary of the Key Points of the Article:
Getting to Grips with Your Tax Code Notice
Picture this: You’re staring at your payslip, and those cryptic letters and numbers under “tax code” – something like 1257L – feel like a secret code you’re not privy to. Don’t worry, it’s simpler than it sounds. Your tax code notice is the key to ensuring you’re paying the right amount of income tax, whether you’re an employee, self-employed, or running a business. In my 15 years as a chartered accountant advising clients across the UK, I’ve seen countless taxpayers overpay (or underpay) due to incorrect tax codes. In fact, HMRC’s 2024 data suggests over 1 million UK taxpayers were issued incorrect tax codes last year, leading to average overpayments of £783 per person. Let’s dive into how you can check or get a copy of your tax code notice, understand what it means, and avoid costly surprises. This first part covers the basics, how to access your notice, and what to look for to spot errors early.
Why Your Tax Code Notice Matters
Let’s start with the big picture. Your tax code tells your employer or pension provider how much tax to deduct from your income under PAYE (Pay As You Earn). It’s issued by HMRC and reflects your personal allowance (£12,570 for the 2025/26 tax year, frozen since 2022), any adjustments (e.g., for benefits or underpayments), and special circumstances like multiple jobs. The tax code notice is the official document explaining how HMRC arrived at your code. If it’s wrong, you could be overtaxed – or face a hefty bill later for underpaying. For business owners or the self-employed, checking your tax code ensures your Self Assessment aligns with PAYE deductions, especially if you mix employment and self-employment income.
Table 1: 2025/26 UK Tax Bands (Excluding Scotland)
Income Band | Tax Rate | Notes |
£0 - £12,570 | 0% | Personal Allowance (frozen; reduced by £1 for every £2 over £100,000) |
£12,571 - £50,270 | 20% | Basic Rate |
£50,271 - £125,140 | 40% | Higher Rate |
Over £125,140 | 45% | Additional Rate |
Source: HMRC 2025/26 tax year guidance |
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Scottish Tax Bands (2025/26)
Income Band | Tax Rate | Notes |
£0 - £12,570 | 0% | Personal Allowance (same as UK) |
£12,571 - £14,876 | 19% | Starter Rate |
£14,877 - £26,280 | 20% | Basic Rate |
£26,281 - £43,662 | 21% | Intermediate Rate |
£43,663 - £75,000 | 42% | Higher Rate |
£75,001 - £125,140 | 45% | Advanced Rate |
Over £125,140 | 48% | Top Rate |
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Welsh Rates: Wales uses the same bands as England but has devolved powers to adjust rates. For 2025/26, rates remain aligned with England’s.
How to Get Your Tax Code Notice
None of us loves tax surprises, but here’s how to take control. Your tax code notice is accessible via your personal tax account on HMRC’s website, by post, or through your employer. Here’s a step-by-step guide to get it:
Log into Your Personal Tax Account: Visit www.gov.uk/check-income-tax-current-year and sign in using your Government Gateway ID. If you don’t have one, set it up with your National Insurance number and two forms of ID (e.g., passport, payslip).
Navigate to PAYE Section: Click “PAYE” on the homepage, then “Check current tax year” to view your tax code and download your notice.
Request by Post: If you can’t access online services, call HMRC at 0300 200 3300 to request a mailed copy (allow 7-10 days).
Check with Your Employer: Your HR or payroll team often has a copy of your notice, especially if HMRC sent it directly.
Pro Tip: Check your tax code at least twice a year – after the new tax year (April) and mid-year (October) – to catch errors early. A client of mine in London, Sarah, saved £1,200 in 2024 by spotting an outdated code after a job change.
10 Innovative Yet Practical Ways To Check Or Get A Copy Of Your Tax Code Notice
1. Log in to Your Personal Tax Account (PTA)
The fastest official method is to sign in to your HMRC Personal Tax Account using your Government Gateway ID.
Navigate to “Pay As You Earn (PAYE)” to see your current and past tax codes.
You can print or download a PDF copy instantly.
2. Use the HMRC App for Instant Access
The HMRC mobile app (iOS/Android) now shows your tax code in real time.
After logging in with your Government Gateway credentials, go to Income Tax → Your Tax Code.
You can take a screenshot or save it as a PDF for your records.
Works even faster than logging in via a desktop browser.
3. Request a Copy via HMRC Webchat
HMRC’s online chat service can provide your tax code after security verification.
Visit the “Contact HMRC” page and choose Income Tax Webchat.
Ask for a copy of your latest P2 “Notice of Coding” to be posted or emailed.
Especially useful if you don’t have a Government Gateway account.
4. Check Your Last Payslip or P60/P45
If you are employed, your tax code is printed on:
Payslips (usually next to “Tax Code”)
P60 (year-end tax summary)
P45 (if you’ve recently left a job)This won’t give you the full P2 notice, but it confirms the exact code HMRC is using.
5. Ask Your Employer or Pension Provider’s Payroll Department
If you’re on PAYE, payroll receives tax code updates directly from HMRC.
Contact HR/payroll and request a copy of the last tax code notification HMRC sent them.
They are required to keep these for compliance.
6. Call HMRC and Request a Postal Copy
You can call the Income Tax Helpline on 0300 200 3300 (Mon–Fri).
Be ready with your National Insurance number, address, and date of birth for security checks.
Ask for your latest P2 notice to be sent by post—arrives in 5–7 working days.
7. Use the “Tax Code Change” Notification in Your Email or Post
If you opted in for digital HMRC messages, you’ll get an email or text alert when your code changes.
Log in to your account to view the update.
If you’re on paper communication, keep the P2 Notice of Coding HMRC posts to you—this is the official document.
8. Check via Self Assessment Portal (if registered)
If you file Self Assessment, your tax code can also appear in your SA account:
Sign in and check PAYE details within your SA profile.
This is a little-known cross-link between HMRC systems.
9. Ask Your Accountant or Tax Adviser to Retrieve It
If you have authorised a tax agent via form 64-8, they can access your PAYE records.
Your accountant can download your tax code notices from HMRC’s Agent Services account and email them to you securely.
10. Request via Subject Access Request (SAR) for Historical Notices
For older or disputed tax code notices, you can submit a Subject Access Request under GDPR to HMRC.
This forces HMRC to send all tax code notices held on file for you, including historic years.
Can be done online or by post; takes up to 30 days.
Decoding Your Tax Code
So, the big question on your mind might be: what do those letters and numbers mean? Your tax code is usually a number followed by a letter. The number (e.g., 1257) is your personal allowance divided by 10, so 1257 means £12,570. The letter indicates adjustments:
● L: Standard personal allowance (£12,570).
● T: Temporary code or adjustments needed.
● BR: Basic rate (20%) on all income, common for second jobs.
● 0T: No personal allowance, often for emergency tax.
● K: Deductions exceed your allowance (e.g., for company benefits).
For example, a 1257L code means you get the full personal allowance, taxed at standard rates. A K code, like K200, means £2,000 in taxable benefits (e.g., a company car) reduces your allowance. In my practice, I’ve seen clients tripped up by K codes when they didn’t report benefits like private healthcare. Check your notice for details on these adjustments.
Spotting Common Errors
Be careful here, because I’ve seen clients trip up when their tax code doesn’t reflect their current situation. Common errors include:
● Outdated Codes: If you’ve changed jobs, HMRC might not update your code promptly.
● Multiple Jobs: Each job may use the wrong allowance split, overtaxing one income stream.
● Emergency Tax Codes (0T, BR): Applied when HMRC lacks your details, leading to higher deductions.
● High-Income Child Benefit Charge: If you earn over £50,000 and claim child benefit, your code may include adjustments to claw back benefits.
Case Study: John’s Emergency Tax Nightmare
John, a Manchester-based IT contractor, switched jobs in 2024 and was slapped with a 0T code, costing him £400 extra in tax for three months. By logging into his personal tax account and updating his estimated income, he corrected the code and claimed a refund. Always check your code after life changes like a new job or marriage.
Worksheet: Check Your Tax Code Accuracy
Here’s a quick checklist to verify your tax code (jot this down or save it):
● Step 1: Compare your tax code on your payslip to your tax code notice.
● Step 2: Confirm your personal allowance (£12,570 unless adjusted).
● Step 3: Check for unexpected letters (e.g., BR, 0T) that suggest errors.
● Step 4: Verify adjustments (e.g., benefits, underpayments) match your circumstances.
● Step 5: Estimate your annual income and cross-check with HMRC’s tax calculator.
This worksheet saved a client in Bristol £900 last year when she noticed a BR code on her second job, which HMRC corrected after a quick call.
Advanced Checks for Complex Tax Scenarios
So, you’ve got your tax code notice in hand, and you’re starting to feel like a tax detective. But what if your income isn’t straightforward – maybe you’ve got a side hustle, a rental property, or you’re running your own business? In my years advising clients in London and beyond, I’ve seen how quickly things can get messy when you’ve got multiple income streams or unique circumstances like Scottish tax rates or emergency codes. This part dives into advanced verification processes, tailored calculations, and practical tips for employees, the self-employed, and business owners. We’ll also tackle niche issues like high-income child benefit charges and how inflation impacts your real tax burden in 2025/26. Let’s make sure you’re not overpaying – or underpaying – by a penny.
Handling Multiple Income Sources
Picture this: You’re juggling a day job, a freelance gig, and maybe some dividends from investments. Each income stream can complicate your tax code, and HMRC doesn’t always get the split right. If you have multiple jobs, your personal allowance (£12,570 in 2025/26) should typically apply to your highest-paying job, with others taxed at the basic rate (BR) or higher rate (D0/D1). But errors happen – I’ve seen clients overtaxed because HMRC split their allowance evenly across jobs.
How to Check:
Log into your personal tax account and view “Income details” to see how HMRC allocates your allowance.
Compare this with your payslips. If your main job has a BR code instead of 1257L, you’re likely overtaxed.
Call HMRC (0300 200 3300) to adjust your allowance allocation, or submit updated income estimates online.
Case Study: Emma’s Side Hustle Surprise
Emma, a teacher in Leeds, started a freelance tutoring business in 2024. Her day job had a 1257L code, but her freelance income was taxed at BR, leading to £650 in overpayments. By updating her estimated freelance earnings via her personal tax account, she corrected her PAYE code and claimed a refund. If you’re mixing PAYE and self-employment, ensure your Self Assessment accounts for all income to avoid double taxation.
Self-Employed and Business Owners: Tax Code Pitfalls
Now, let’s think about your situation – if you’re self-employed or a business owner, your tax code might seem irrelevant since you pay via Self Assessment. But if you also have PAYE income (e.g., from a part-time job), your tax code still matters. A common trap is unreported side hustles, especially in the gig economy. HMRC’s 2025 crackdown on platforms like Uber and Etsy means undeclared income could trigger an emergency tax code (0T) or penalties.
Verification Steps:
● Cross-Check PAYE and Self Assessment: Ensure your tax code reflects only your PAYE income. Log into your personal tax account to confirm.
● Track Deductible Expenses: Business owners can reduce taxable income with expenses like office costs or travel. Keep receipts and use accounting software to log them.
● IR35 Considerations: If you’re a contractor affected by IR35 (reformed in 2021), ensure your client’s payroll uses the correct tax code, not a default BR.
Table 2: Common Deductible Expenses for Self-Employed (2025/26)
Expense Type | Examples | Notes |
Office Costs | Stationery, software | Must be wholly and exclusively for business use |
Travel | Mileage (45p/mile first 10,000 miles) | Keep a logbook for HMRC audits |
Professional Fees | Accountant fees, subscriptions | Check HMRC’s allowable list |
Capital Allowances | Equipment, machinery | Claim via Annual Investment Allowance (up to £1m in 2025/26) |
Source: HMRC Self Assessment guidance |
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Pro Tip: Use a custom worksheet to track expenses. For example, I advise clients to list monthly costs under categories like “Travel” and “Office” to simplify year-end filings. This saved a Birmingham client £2,100 in 2024 by catching unclaimed mileage.
Scottish and Welsh Tax Variations
Be careful here, because I’ve seen clients trip up when they move across UK borders. If you live in Scotland, your tax bands differ significantly (see Part 1’s Table 1). For example, earning £30,000 in Scotland means you’re taxed at 21% on part of your income, versus 20% in England. Wales aligns with England’s rates for 2025/26, but future devolved changes could shift this. Always check your tax code notice for a Scottish “S” prefix (e.g., S1257L) or Welsh “C” prefix (C1257L). If you’ve relocated, notify HMRC immediately to avoid overtaxing.
Emergency Tax Codes and How to Fix Them
None of us loves being hit with an emergency tax code like 0T or BR, which assumes no personal allowance and taxes all income at 20% or higher. These often appear after starting a new job or if HMRC lacks your details. In 2024, I helped a client, Tom from Bristol, who was taxed £1,800 extra due to a 0T code after a career break.
Fix It Fast:
Submit your P45 (or P46 if you don’t have one) to your employer.
Update your income details in your personal tax account.
Call HMRC to expedite the correction – they can issue a new code within days.
High-Income Child Benefit Charge
If you earn over £50,000 and claim child benefit, HMRC adjusts your tax code to recover part or all of the benefit. For every £100 over £50,000, you repay 1% of the benefit. Over £60,000, you repay it all. For example, on a £55,000 salary with two children (£2,212 annual benefit in 2025/26), you’d repay 50% (£1,106) via your tax code.
Worksheet: Calculate Your Charge
● Step 1: Note your adjusted net income (salary minus pension contributions).
● Step 2: Subtract £50,000 to find excess income.
● Step 3: Divide excess by 100, then multiply by 1% of your child benefit amount.
● Step 4: Check your tax code notice for this adjustment (often a K code).
A client in Cardiff avoided a £900 overpayment in 2023 by spotting this adjustment early and opting out of child benefit, which simplified her tax code.
Inflation’s Hidden Tax Bite
Here’s a sneaky issue: with the personal allowance frozen at £12,570 until 2028, inflation (running at 2.5% in mid-2025, per ONS) pushes more of your income into taxable bands. For example, a £30,000 salary in 2025/26 incurs £3,486 in tax (20% on £17,430 after allowance). If inflation raises your salary to £30,750 next year, you’ll pay £3,636 – an extra £150 despite no real income gain. Check your tax code annually to ensure it aligns with your rising income.
Calculating Your Tax, Claiming Refunds, and Optimising for Business Owners
So, you’ve checked your tax code notice and spotted potential issues – maybe an incorrect code or an unexpected adjustment. Now, let’s get hands-on. Whether you’re an employee worried about overpaying, a freelancer juggling Self Assessment, or a business owner maximising deductions, this final part equips you with tools to calculate your tax liability, claim refunds, and avoid pitfalls. In my 15 years advising UK taxpayers, I’ve seen how a bit of number-crunching can save thousands – like the London client who reclaimed £2,300 after spotting an overpayment. We’ll cover manual calculations, refund processes, and business-specific strategies, wrapping up with a concise summary of key takeaways. Let’s dive in.
How to Calculate Your Tax Liability Manually
None of us loves doing maths, but knowing how to calculate your tax can save you from surprises. If you’re on PAYE, your tax code should do the heavy lifting, but errors happen. For self-employed or business owners, manual calculations help cross-check Self Assessment filings. Here’s a step-by-step guide using 2025/26 rates:
Step-by-Step Guide: Tax Calculation (England/Wales)
Determine Taxable Income: Subtract your personal allowance (£12,570) from your total income (salary, freelance earnings, etc.).
Apply Tax Bands: Tax the first £37,700 (up to £50,270) at 20%, £50,271–£125,140 at 40%, and above £125,140 at 45%.
Add Adjustments: Include taxable benefits (e.g., company car) or child benefit charges.
Factor in National Insurance (NI): For 2025/26, Class 1 NI is 8% on earnings between £12,570 and £50,270, and 2% above that (thresholds frozen per HMRC).
Example Calculation: Sarah’s £40,000 Salary
● Income: £40,000 (PAYE, no other sources).
● Taxable Income: £40,000 - £12,570 = £27,430.
● Tax: £27,430 × 20% = £5,486.
● NI: (£50,270 - £12,570) × 8% = £3,016.
● Total Deductions: £5,486 (tax) + £3,016 (NI) = £8,502.
● Take-Home: £40,000 - £8,502 = £31,498.
Table 3: Sarah’s Tax Breakdown (2025/26)
Component | Amount | Notes |
Gross Income | £40,000 | Salary only |
Personal Allowance | £12,570 | Standard, no adjustments |
Taxable Income | £27,430 | After allowance |
Income Tax (20%) | £5,486 | Basic rate on £27,430 |
NI (8%) | £3,016 | On £37,700 (within NI threshold) |
Net Income | £31,498 | After deductions |
Source: HMRC 2025/26 tax rates |
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For Scottish taxpayers, use the Scottish bands (e.g., 21% on £26,281–£43,662). Cross-check your calculation with your payslip or HMRC’s tax calculator.
Claiming a Tax Refund
Picture this: You’ve checked your tax code and realise you’ve overpaid – maybe due to a BR code on a second job or an emergency 0T code. HMRC processed £4.2 billion in refunds in 2024, so you’re not alone. Here’s how to claim:
Check Your P60/P45: Your end-of-year P60 (or P45 if you left a job) shows total tax paid. Compare it with your manual calculation.
Log into Your Personal Tax Account: Visit www.gov.uk/check-income-tax-current-year and select “Claim a refund” under “PAYE.”
Submit Evidence: Upload payslips or P60s if requested. For complex cases (e.g., multiple jobs), call HMRC at 0300 200 3300.
Expect Payment: Refunds typically arrive within 6 weeks, via bank transfer or cheque.
Case Study: Raj’s Refund Victory
Raj, a Birmingham freelancer, was overtaxed £1,800 in 2024 due to a 0T code on his part-time lecturing job. By submitting his P45 and updated income details via his personal tax account, he reclaimed the full amount within a month. Always act fast – you can claim refunds up to 4 years back.
Optimising Deductions for Business Owners
Now, let’s think about your situation – if you’re a business owner, deductions are your secret weapon to lower taxable income. In 2025/26, common deductions include mileage (45p/mile for the first 10,000 miles), office costs, and professional fees. A client in Manchester saved £3,400 last year by meticulously tracking home office expenses, which HMRC often scrutinises.
Deduction Checklist for Business Owners
● Mileage: Log every business trip (e.g., client meetings). Use 45p/mile up to 10,000 miles, then 25p/mile.
● Home Office: Claim a proportion of utilities (e.g., 20% of electricity if your office is 20% of your home).
● Capital Allowances: Claim up to £1m via the Annual Investment Allowance for equipment (e.g., laptops).
● Professional Costs: Include accounting fees, trade subscriptions, and training courses.
Worksheet: Track Your Deductions
● Step 1: List monthly expenses under categories (e.g., “Travel,” “Office”).
● Step 2: Calculate allowable portions (e.g., 20% of rent for home office).
● Step 3: Cross-check with HMRC’s allowable expenses list .
● Step 4: Keep receipts digitally or physically for 6 years.
This worksheet helped a Bristol client claim an extra £1,200 in deductions by spotting unclaimed software subscriptions.
Rare Scenarios: Gig Economy and Over-65 Allowances
Be careful here, because I’ve seen clients trip up in niche cases. If you’re in the gig economy (e.g., Deliveroo, Fiverr), HMRC’s 2025 data-sharing agreements with platforms mean unreported income could trigger tax code adjustments. Report all earnings via Self Assessment to avoid surprises. For over-65s, the personal allowance remains £12,570 (no age-related additions since 2016), but check for Marriage Allowance (£1,260 transferable if
your spouse earns under £12,570).
Summary of Key Points
Your tax code notice explains how HMRC calculates your PAYE deductions. Check it twice yearly to avoid errors.
Access your notice via your personal tax account or by calling HMRC at 0300 200 3300.
Common tax codes like 1257L mean a standard £12,570 allowance; BR or 0T codes often signal overtaxing.
Multiple income sources require careful allowance allocation to prevent overpayment. Update HMRC with accurate income estimates.
Scottish taxpayers face different tax bands (e.g., 21% on £26,281–£43,662); ensure your code has an “S” prefix.
Emergency tax codes (0T, BR) can be fixed by submitting a P45 or updating your personal tax account.
Self-employed individuals must align PAYE codes with Self Assessment and track deductible expenses like mileage (45p/mile).
High-income child benefit charges (over £50,000) adjust your tax code; calculate repayments to avoid surprises.
Manually calculate your tax liability using 2025/26 bands (20% up to £50,270, 40% up to £125,140) to verify payslips.
Claim refunds for overpayments via your personal tax account; act within 4 years to recover funds.
FAQs
Q1: What should someone do if they can’t access their personal tax account online?
A1: It’s a common hiccup, especially for those not tech-savvy. If you can’t log into your personal tax account due to issues like a lost Government Gateway ID, call HMRC at 0300 200 3300 to request a mailed tax code notice – expect it in 7-10 days. Alternatively, ask your employer’s payroll team for a copy, as they often receive it directly. A client in Bristol once struggled with login issues but got sorted by verifying their identity over the phone with HMRC. Always have your National Insurance number handy to speed things up.
Q2: Can someone change their tax code if it’s incorrect?
A2: Absolutely, and it’s easier than you’d think. If your tax code looks off – say, a BR code when you expected 1257L – update your income details in your personal tax account or call HMRC. For example, a Leeds client fixed an incorrect K code by submitting a recent payslip showing company benefits were misreported. HMRC typically updates codes within days, but keep payslips to track deductions until it’s sorted.
Q3: How does someone know if their tax code includes marriage allowance?
A3: Marriage Allowance can be a nice little saver, but it’s not always obvious. Check your tax code notice for an “M” (receiver) or “N” (giver) suffix, like 1383M. This means £1,260 of your partner’s personal allowance is transferred to you, boosting your allowance to £13,830. A Cardiff couple I advised spotted this on their notice and saved £252 in tax for 2025/26. If it’s missing and you’re eligible (one partner earns under £12,570), apply via your personal tax account.
Q4: What happens if someone’s tax code notice is missing from their employer’s records?
A4: It’s a bit of a pain, but not uncommon, especially with smaller firms. First, check your personal tax account online, as it’s the most reliable source. If that’s not an option, call HMRC to request a copy. I had a client in Manchester whose employer lost their notice, but HMRC mailed a replacement within a week. Always keep a digital or paper copy of your payslips as a backup to cross-check deductions.
Q5: Can a self-employed person have a tax code if they also have a part-time job?
A5: Yes, and this is where things get tricky. Your part-time job’s PAYE deductions use a tax code (e.g., 1257L), while your self-employed income is handled via Self Assessment. A freelancer in Glasgow I worked with was overtaxed because her PAYE job used a BR code, ignoring her full allowance. Update your job’s tax code via your personal tax account to ensure your allowance applies correctly, and report all income in Self Assessment to avoid penalties.
Q6: How does someone check if their tax code accounts for a company car benefit?
A6: Company cars can mess with your tax code, and I’ve seen clients blindsided by this. Look for a “K” code (e.g., K150) on your notice, indicating taxable benefits reduce your personal allowance. For 2025/26, a car with 100g/km CO2 emissions might add £2,000 to your taxable income. Check your notice’s “Benefits” section for details, and confirm with your employer’s HR if the car’s value matches. A London client saved £400 by spotting an outdated car valuation.
Q7: What should someone do if they suspect they’ve been taxed at an emergency rate?
A7: Emergency tax codes like 0T or BR are a headache, but fixable. They often hit when HMRC lacks your details, taxing all income without an allowance. Submit your P45 (or P46 if new to work) to your employer, and update your income in your personal tax account. A Birmingham teacher I advised was taxed £600 extra on a 0T code but got it corrected within a week by calling HMRC. Act fast to avoid months of overpayment.
Q8: How can someone verify their tax code if they work remotely from another UK region?
A8: Remote work adds a twist, especially if you’ve moved regions. Your tax code should reflect your residence – “S” for Scotland, “C” for Wales, or no prefix for England/NI. A client who moved from London to Edinburgh missed the “S” prefix, leading to incorrect tax at English rates. Update your address in your personal tax account or notify HMRC by phone to ensure the right regional rates apply.
Q9: Does a tax code notice show National Insurance contributions?
A9: No, your tax code notice focuses on income tax, not NI. However, your payslip shows NI deductions (8% on £12,570–£50,270 for 2025/26). To verify, calculate NI manually and compare with payslips. I helped a client in Sheffield spot an NI overpayment when her employer misapplied thresholds. If you suspect errors, contact your payroll team first, then HMRC if unresolved.
Q10: Can someone get a tax code notice for a previous tax year?
A10: Yes, but it takes a bit of digging. Your personal tax account shows notices for the current and past years (up to 4 years back). If unavailable, request copies from HMRC by phone. A Bristol shop owner I advised needed her 2023/24 notice to claim a refund and got it mailed after a quick call. Keep records, as HMRC may charge for older copies.
Q11: How does a tax code affect someone with rental income?
A11: Rental income doesn’t directly impact your PAYE tax code, but it’s taxed via Self Assessment. If you also have a PAYE job, ensure your tax code (e.g., 1257L) applies only to that income. A landlord in Leeds I worked with was overtaxed because HMRC assumed her rental income altered her PAYE code. Declare rentals separately in Self Assessment to keep your code clean.
Q12: What if someone’s tax code notice shows a student loan repayment adjustment?
A12: Student loan repayments can sneak into your tax code, especially for Plan 2 or 4 loans. Your notice will list deductions (e.g., 9% on earnings over £25,000 for Plan 2 in 2025/26). A client in Cardiff was overcharged when her employer applied repayments to non-eligible income. Check your notice’s “Adjustments” section and confirm your plan type with the Student Loans Company if it looks off.
Q13: Can a pensioner check their tax code notice the same way as employees?
A13: Pretty much, but pensions add a wrinkle. Your pension provider uses a tax code like employees, accessible via your personal tax account. A retired client in Manchester found her 1257L code was wrong due to unreported savings income. Check your notice for adjustments like taxable interest, and update HMRC if your pension or other income changes.
Q14: How does someone know if their tax code includes a high-income child benefit charge?
A14: This one catches many high-earners off guard. If you earn over £50,000 and claim child benefit, your tax code notice will show a K code reflecting the charge (1% of benefit per £100 over £50,000). A London manager I advised spotted a £1,200 charge on his notice and opted out of benefits to simplify his code. Check the “Adjustments” section and calculate manually to confirm accuracy.
Q15: What should a business owner do if their tax code notice seems irrelevant?
A15: If you’re solely self-employed, your tax code might not apply, as you pay via Self Assessment. But if you mix PAYE (e.g., from a side job), ensure your code reflects only that income. A Birmingham café owner I helped was taxed twice on PAYE income due to a mismatched code. Update your personal tax account to separate PAYE and business income, and track deductions carefully.
Q16: Can someone check their tax code if they’re on a temporary contract?
A16: Temporary contracts often trigger emergency codes like BR or 0T, which can overtax you. A temp worker in Glasgow I advised was hit with a 0T code, costing £500 extra. Check your tax code notice in your personal tax account, submit a P46 to your employer, and update HMRC with your estimated annual income to get the right code fast.
Q17: How does a tax code notice differ for someone with dividends?
A17: Dividends don’t directly affect your PAYE tax code but are taxed via Self Assessment (8.75% up to £50,270, 33.75% up to £125,140 for 2025/26). If you have a PAYE job, ensure your tax code applies only to that income. A client in Bristol overpaid when dividends were mistakenly factored into her PAYE code. Check your notice for errors and report dividends separately.
Q18: What if someone’s tax code notice shows an underpayment from a previous year?A19: Underpayments can sting, but they’re fixable. Your notice may show a K code (e.g., K300) to recover £3,000 owed from past years via reduced allowances. A Sheffield client faced this after unreported freelance work. Confirm the amount in your personal tax account, and if it’s wrong, call HMRC with evidence like old payslips to dispute it.
Q19: Can someone check their tax code if they work for a foreign employer but live in the UK?
A19: It’s a bit of a minefield, but yes. If you’re UK-resident, your foreign employer’s UK payroll should use a tax code, accessible via your personal tax account. A remote worker in London I advised was taxed incorrectly due to a missing P45. Submit your income details to HMRC and ensure your code (e.g., 1257L) reflects UK residence, not foreign tax rules.
Q20: How does someone verify their tax code if they’ve just started a new job?
A20: New jobs often start with a default code like BR or 0T until HMRC gets your details. A client in Leeds overpaid £700 in her first month due to this. Hand your P45 to your employer, or complete a P46 if you don’t have one. Check your first payslip against your tax code notice in your personal tax account, and update HMRC to avoid overtaxing.
About the Author
Maz Zaheer, AFA, MAAT, MBA, is the CEO and Chief Accountant of MTA and Total Tax Accountants, two premier UK tax advisory firms. With over 15 years of expertise in UK taxation, Maz provides authoritative guidance to individuals, SMEs, and corporations on complex tax issues. As a Tax Accountant and an accomplished tax writer, he is renowned for breaking down intricate tax concepts into clear, accessible content. His insights equip UK taxpayers with the knowledge and confidence to manage their financial obligations effectively.
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