How to Get a Copy of Your Tax Code Notice?
- MAZ
- Jun 1, 2024
- 21 min read
Updated: Aug 12
Understanding and Accessing Your Tax Code Notice in the UK
In the UK, understanding and managing your tax code is crucial for ensuring you are paying the correct amount of tax. The tax code assigned to you by HM Revenue and Customs (HMRC) determines how much tax your employer or pension provider should deduct from your salary or pension. This first part of the article will guide you on how to access your tax code notice, what it contains, and why it's important.
Unlocking Your Tax Code Notice – Your First Step to Tax Clarity
Picture this: You’re staring at your payslip, and there it is – a string of numbers and letters that looks like a secret code. That’s your tax code, and it’s the key to how much income tax gets deducted from your pay or pension. Getting a copy of your Tax Code Notice (P2) is your starting point to ensure you’re not overpaying or underpaying tax, especially in the 2025/26 tax year. As a chartered accountant with over 15 years advising UK taxpayers, I’ve seen countless clients in London and beyond tripped up by incorrect tax codes, costing them hundreds or even thousands. This guide will walk you through exactly how to get your Tax Code Notice, verify it, and understand its impact on your finances, whether you’re an employee, self-employed, or a business owner.
Why Your Tax Code Notice Matters
Your Tax Code Notice, issued by HM Revenue and Customs (HMRC), is like a roadmap for your employer or pension provider to calculate your income tax. It details your tax code – say, 1257L for the standard personal allowance of £12,570 in 2025/26 – and explains how it’s calculated. According to HMRC, over 30% of PAYE taxpayers have faced tax code errors at some point, often due to unreported income changes or multiple jobs. A wrong code can mean overpaying tax (hurting your cash flow) or underpaying (leading to a surprise bill). For business owners or the self-employed, understanding your code is crucial for aligning PAYE deductions with Self Assessment filings.
How to Get Your Tax Code Notice – Step-by-Step
Let’s make this simple. Here’s how you can get your hands on your Tax Code Notice, whether you’re tech-savvy or prefer the old-school approach:
Check Your Personal Tax Account Online: The fastest way is through your Personal Tax Account on the gov.uk website. Sign in or create an account using your Government Gateway ID. Once logged in, you’ll see your current tax code, past codes, and any P2 notices issued. You can download these as PDFs or opt for paperless notifications. In my experience, clients who regularly check their account catch errors early – like Sarah from Manchester, who spotted a £400 overpayment after reviewing her notice online.
Use the HMRC App: The HMRC app is a gem for quick access. Available on iOS and Android, it lets you view your tax code and notices on the go. It’s especially handy for business owners juggling multiple income streams, as it updates in real time when HMRC adjusts your code.
Check Your Payslip or P60: Your tax code appears on your payslip, P60 (end-of-year certificate), or P45 (if you’ve left a job). These won’t give the full P2 notice but confirm your current code. For example, a client in Leeds found her code was BR (basic rate, no allowance) instead of 1257L because HMRC hadn’t updated her second job details.
Request a Paper Copy from HMRC: If you’re not online, HMRC mails P2 notices to your registered address, typically in January for the new tax year (6 April 2025 for 2025/26). If you’ve lost it, call HMRC at 0300 200 3300 or write to them. Be ready with your National Insurance number. I’ve had clients wait up to two weeks for postal copies, so plan ahead.
Ask Your Employer or Pension Provider: They receive your tax code from HMRC and can share the notice. This is useful if you suspect a mismatch, as employers sometimes apply outdated codes.
Understanding Your Tax Code Basics
So, you’ve got your notice – now what? Your tax code is a mix of numbers and letters. The number shows your tax-free allowance (e.g., 1257 means £12,570), and the letter indicates your situation:
● L: Standard personal allowance (£12,570 for 2025/26).
● BR: Taxed at basic rate (20%), often for second jobs.
● K: Deductions exceed your allowance, e.g., for unpaid tax or company benefits.
● S or C: Scottish or Welsh tax rates apply.
For 2025/26, the personal allowance remains frozen at £12,570, as confirmed by HMRC, meaning no tax on income up to this amount. Above that, tax bands are:
Income Band (England, Wales, NI) | Tax Rate | Income Band (Scotland) | Tax Rate |
£0 - £12,570 (Personal Allowance) | 0% | £0 - £12,570 | 0% |
£12,571 - £50,270 (Basic Rate) | 20% | £12,571 - £14,876 (Starter) | 19% |
£50,271 - £125,140 (Higher Rate) | 40% | £14,877 - £26,561 (Basic) | 20% |
Over £125,140 (Additional Rate) | 45% | £26,562 - £43,662 (Intermediate) | 21% |
£43,663 - £75,000 (Higher) | 42% | ||
Over £75,000 (Top Rate) | 47% |
Table 1: 2025/26 Income Tax Bands for England/Wales/NI and Scotland
Scottish taxpayers face different rates, starting at 19% for lower incomes, which can complicate codes if you move across borders. Welsh rates align with England’s for 2025/26, but always check your notice for the S or C prefix.
Common Pitfalls and How to Avoid Them
Be careful here, because I’ve seen clients trip up when they assume their tax code is correct. Common issues include:
● Multiple Income Sources: If you have two jobs or a pension, HMRC may split your allowance or apply BR or 0T codes, leading to overtaxing. For instance, a client with a side hustle was coded 0T (no allowance) on her second job, costing her £200 monthly until corrected.
● Emergency Tax Codes (W1/M1/X): These apply when HMRC lacks your details, often after a job change. They tax your pay period in isolation, potentially overtaxing you. Update HMRC quickly to revert to a standard code.
● High-Income Child Benefit Charge: If you earn over £50,000 and claim Child Benefit, your code may include a deduction. For 2025/26, the charge starts at 1% of the benefit per £100 over £50,000, fully phasing out at £60,000.
To avoid these, check your notice against your payslips and P60. If you spot an error, contact HMRC via your Personal Tax Account or phone. Provide details like your National Insurance number, recent payslips, and any income changes.
Case Study: Emma’s Tax Code Mishap
Take Emma, a marketing manager in Bristol with a £35,000 salary and a £10,000 freelance gig. Her main job had the 1257L code, but her freelance income was coded BR, taxing all of it at 20%. She was overpaying because her total income (£45,000) still qualified for the full personal allowance. After reviewing her P2 notice online, she contacted HMRC, who adjusted her freelance code to 625L (half the allowance), saving her £1,250 annually. This is why checking your notice is non-negotiable.
Verifying Your Tax Code and Calculating Your Tax Liability
So, you’ve got your Tax Code Notice in hand – brilliant! Now, let’s roll up our sleeves and make sure it’s correct, while also working out what you owe (or might be owed) in tax. None of us loves tax surprises, but here’s how to avoid them. As a chartered accountant who’s helped countless UK taxpayers navigate the maze of PAYE and Self Assessment, I’ve seen how a quick check can save you from hefty overpayments or unexpected bills. This part will guide you through verifying your tax code, calculating your income tax liability, and spotting errors, with tailored advice for employees, self-employed individuals, and business owners. We’ll also tackle trickier scenarios like multiple income sources and regional tax variations.
How Do You Know If Your Tax Code Is Correct?
Let’s start with the big question on your mind: is your tax code right? Your Tax Code Notice (P2) explains how HMRC arrived at your code, but errors creep in when life changes – new jobs, side hustles, or even moving to Scotland. Here’s how to verify it:
● Cross-Check Your Allowance: For 2025/26, the standard personal allowance is £12,570, so a 1257L code means you’re getting the full tax-free amount. If your code is BR (basic rate, no allowance) or 0T (no allowance), check why. It might be correct for a second job, but I’ve had clients overtaxed because HMRC missed their main job’s allowance.
● Spot Deductions: Codes like K indicate deductions (e.g., company car benefits or underpaid tax from prior years). Your notice will list these. For example, a client in Birmingham had a K200 code, reducing his allowance by £2,000 due to a company car. He didn’t realise until we reviewed his notice together.
● Check for Regional Codes: If you live in Scotland (S) or Wales (C), your code reflects local tax rates. A Scottish client once missed an S1257L code, assuming English rates applied, and overpaid due to the 19% starter rate kicking in earlier.
● Review Life Changes: Marriage, divorce, or starting a pension can adjust your code. For instance, the Marriage Allowance (£1,260 in 2025/26) can boost your allowance to 1383L if you transfer part of your spouse’s allowance. Always notify HMRC of changes via your Personal Tax Account.
If something looks off, contact HMRC immediately. Use the online portal or call 0300 200 3300 with your National Insurance number and payslip details. In my years advising clients, I’ve found that acting fast prevents small errors from snowballing.
Calculating Your Tax Liability – A Step-by-Step Guide
Now, let’s think about your situation – are you an employee, self-employed, or a business owner? Calculating your tax liability helps confirm if your tax code is doing its job. Here’s how to do it manually, with examples for clarity:
Gather Your Income Details: List all taxable income – salary, freelance earnings, pensions, or dividends. For PAYE employees, check your payslip or P60. Self-employed? Use your accounting records or Self Assessment data.
Subtract Your Personal Allowance: For 2025/26, deduct £12,570 from your total income (unless your code indicates otherwise). If you earn over £100,000, the allowance tapers by £1 for every £2 above £100,000, vanishing at £125,140.
Apply Tax Rates: Use the 2025/26 tax bands (see Table 2 below). For England, Wales, and Northern Ireland, tax is 20% on income from £12,571 to £50,270, 40% up to £125,140, and 45% beyond. Scotland’s rates differ, starting at 19%.
Factor in Deductions: Include National Insurance (8% on earnings between £12,570 and £50,270, 2% above), student loan repayments, or Child Benefit charges if applicable.
Compare with Payslips: Your payslip deductions should align with your calculation. If not, your tax code might be wrong.
Income (£) | Taxable Income | Tax Rate (England) | Tax Payable | Tax Rate (Scotland) | Tax Payable |
25,000 | 12,430 | 20% | £2,486 | 19% (Starter) | £2,361.70 |
60,000 | 47,430 | 20% (£12,571-£50,270) + 40% (£50,271-£60,000) | £8,972 | 19%-42% (Starter to Higher) | £9,548.40 |
130,000 | 117,430 (no allowance) | 20% + 40% + 45% | £37,828.50 | 19%-47% | £40,211.10 |
Table 2: Example Tax Calculations for 2025/26 (Excludes NI and Other Deductions)
Case Study: Tom’s Multi-Job Tax Trap
Take Tom, a self-employed graphic designer in Glasgow earning £30,000, with a part-time teaching job at £15,000. His teaching job had a 1257L code, but his self-employed income wasn’t initially reported to HMRC, leading to an emergency 0T code on his teaching pay. This overtaxed him by £2,500. After updating HMRC via his Personal Tax Account, his code was adjusted to split the allowance, and he claimed a refund. This shows why syncing all income sources with HMRC is critical, especially for self-employed taxpayers.
Special Considerations for Self-Employed and Business Owners
If you’re self-employed or run a business, your tax code might only apply to PAYE income (e.g., a side job), while your business profits are taxed via Self Assessment. Here’s what to watch for:
● Unreported Income: Side hustles like Uber or Etsy sales must be reported. I’ve seen clients hit with penalties for unreported gig economy income, which HMRC now tracks via platforms’ data-sharing agreements (new for 2025/26).
● Business Deductions: Claim allowable expenses (e.g., office costs, travel) to reduce taxable profits. For example, a client in London deducted £3,000 in home office costs, lowering her tax bill by £600 at the 20% rate.
● IR35 Complications: If you’re a contractor under IR35 rules, your client may deduct PAYE tax, using codes like BR. Check your notice to ensure deductions align with your Self Assessment.
Advanced Tax Code Checks and Taking Control of Your Tax Affairs
Be careful here, because I’ve seen clients trip up when they overlook the finer details of their tax code. By now, you’ve got your Tax Code Notice and verified its basics, but what about those tricky scenarios like emergency tax codes, age-related allowances, or claiming a refund? As a chartered accountant with 15 years helping UK taxpayers, I’ve guided everyone from retirees in Cornwall to self-employed contractors in Cardiff through these complexities. This final part dives into advanced checks, rare cases, and practical tools to ensure your tax code works for you, whether you’re an employee, self-employed, or business owner. We’ll wrap up with a concise summary of key takeaways to keep you on track.
What If You’re on an Emergency Tax Code?
Picture this: You start a new job, and your first payslip shows a tax code like W1, M1, or X. These are emergency tax codes, applied when HMRC lacks your full details, often taxing your pay as if it’s your only income for the period. For 2025/26, this can lead to overtaxing, especially if your annual income qualifies for the £12,570 personal allowance. A client in Newcastle faced this after switching jobs, losing £300 monthly until we sorted it.
How to Fix It:
● Update HMRC with your employment history via your Personal Tax Account or by calling 0300 200 3300.
● Provide your P45 from your previous job to your new employer.
● Check your next payslip to ensure the code reverts to 1257L (or your correct code). Refunds for overpaid tax are usually automatic, but you may need to claim via HMRC’s portal.
Age-Related Allowances and High-Income Traps
If you’re over 65, you might be wondering about extra allowances. Unfortunately, for 2025/26, the personal allowance remains £12,570 for everyone, with no additional age-related relief since the Senior Citizens Allowance was scrapped years ago. However, pensioners often face unique tax code issues:
● Pension Income: Your state or private pension may have a BR code if HMRC assumes it’s a secondary income. A retired client in Devon was overtaxed because her state pension used up her allowance, leaving her private pension fully taxed at 20%.
● Blind Person’s Allowance: If applicable, this adds £3,070 to your allowance for 2025/26, coded as, say, 1564L. Claim it via HMRC if you’re registered blind.
For high earners, watch out for the High-Income Child Benefit Charge (HICBC). If you or your partner earn over £50,000 and claim Child Benefit, your tax code may include a deduction. For 2025/26, the charge is 1% of the benefit per £100 over £50,000, fully phasing out at £60,000. For example, with two children (£25.60/week per child), earning £55,000 triggers a £1,331.20 annual charge, often coded as a K deduction. Check your notice to confirm.
Claiming Refunds or Correcting Underpayments
So, the big question might be: are you owed money, or do you owe HMRC? Overpayments are common – HMRC data suggests £700 million in refunds is claimed annually, often from incorrect codes. Underpayments, meanwhile, can lead to a surprise bill, especially for self-employed taxpayers missing Self Assessment deadlines.
Steps to Claim a Refund:
Log into your Personal Tax Account to check overpayments for the last four tax years (e.g., back to April 2021 for 2025/26).
Submit payslips, P60s, or P45s to HMRC if prompted.
Expect refunds via bank transfer or cheque within 6-8 weeks. A client in Sheffield reclaimed £1,200 after spotting a 0T code error from a short-term job.
Handling Underpayments:
● If your code includes a K prefix (e.g., K500 adds £5,000 to your taxable income), it’s HMRC collecting past underpayments.
● Pay via adjusted PAYE deductions or a lump sum through Self Assessment. Contact HMRC to negotiate instalments if the amount is large.
Business Owners: Aligning Tax Codes with Self Assessment
For business owners, your tax code typically applies to PAYE income (e.g., director’s salary), while profits are taxed via Self Assessment. Here’s how to stay on top:
● Deductible Expenses: Claim costs like software subscriptions or professional fees. A client running a café in Manchester saved £2,000 by deducting new equipment costs for 2025/26.
● IR35 and Off-Payroll Working: If you’re a contractor, ensure your client’s PAYE deductions (often BR) align with your Self Assessment. Recent IR35 changes (tightened in 2023) mean more businesses deduct tax at source.
● Provisional Tax Codes: If HMRC issues a temporary code for your business income, verify it against your projected profits to avoid surprises.
Use this table to estimate your business tax liability:
Profit (£) | Taxable Profit (After £12,570 Allowance) | Tax Rate (England) | Tax Payable | Class 4 NI (9% £12,570-£50,270, 2% above) | Total |
30,000 | 17,430 | 20% | £3,486 | £1,568.70 | £5,054.70 |
75,000 | 62,430 | 20% + 40% | £15,972 | £3,820.10 | £19,792.10 |
150,000 | 137,430 (no allowance) | 20% + 40% + 45% | £46,828.50 | £4,820.10 | £51,648.60 |
Table 3: 2025/26 Business Profit Tax and NI Calculations (England)
Case Study: Priya’s Gig Economy Overpayment
Priya, a self-employed tutor in Cardiff, earned £20,000 from tutoring and £15,000 from Uber driving in 2024/25. Her Uber income was coded BR due to HMRC’s gig economy data-sharing, but she didn’t report her tutoring income initially. This led to a £1,500 overpayment. After filing her Self Assessment and updating her Personal Tax Account, HMRC adjusted her code to 1257L across both incomes, refunding her and aligning her 2025/26 deductions.
Summary of Key Points
Your Tax Code Notice (P2) details how your tax code is calculated and is essential for verifying your tax deductions.
Access your notice via your Personal Tax Account, HMRC app, payslips, or by requesting a paper copy.
The standard 2025/26 personal allowance is £12,570, coded as 1257L, but codes like BR or K may apply for multiple incomes or deductions.
Verify your code against payslips and P60s to catch errors like emergency codes (W1/M1/X) or incorrect allowances.
Calculate your tax liability manually using 2025/26 rates (20% basic rate, 40% higher, 45% additional for England) to confirm deductions.
○ Scottish rates differ (19% starter, up to 47% top rate), so check for S prefixes.
Self-employed taxpayers must align PAYE codes with Self Assessment, reporting all income like gig economy earnings.
Business owners should claim allowable expenses and check IR35-related PAYE deductions to optimise tax.
Overpayments can be reclaimed via HMRC’s portal, while underpayments may appear as K codes or Self Assessment bills.
Regularly update HMRC with income or life changes to prevent tax code errors and costly surprises.
Use checklists and worksheets to track your tax code, income, and deductions for 2025/26 accuracy.
How a Personal Tax Accountant Can Help You Obtain a Copy of Your Tax Code Notice
In the UK, managing tax affairs efficiently is crucial for ensuring compliance with HM Revenue and Customs (HMRC) regulations. A personal tax accountant plays a pivotal role in this process, particularly in helping individuals understand and access their tax code notice. This document is vital as it determines how much tax is deducted from your income. Here, we explore the various ways a personal tax accountant can assist you in obtaining and understanding your tax code notice.
Understanding the Role of a Tax Code Notice
Before delving into how a tax accountant can assist, it’s important to understand what a tax code notice is. It's a statement sent by HMRC that outlines your tax code and explains the details used to determine it. This code influences how your employer or pension provider deducts taxes from your salary or pension. A correct tax code is essential to ensure that you're not overpaying or underpaying taxes.
Direct Assistance with Accessing the Tax Code Notice
Navigating HMRC’s Systems: Tax accountants are well-versed in navigating HMRC’s online systems. They can guide you or directly access your Personal Tax Account to check and download your tax code notice. This is especially beneficial for those who find online systems daunting or have limited internet access.
Communicating with HMRC: If there are any issues in obtaining the tax code notice, such as delays or technical problems, a tax accountant can handle communications with HMRC on your behalf. Their expertise and familiarity with tax jargon can expedite resolutions and clarify complex inquiries.
Correcting Discrepancies in Tax Codes
Identifying Errors: Accountants can review your tax code notice for accuracy by comparing it against your actual financial circumstances. If they find discrepancies, such as incorrect income figures or overlooked allowances, they can take swift action to rectify these with HMRC.
Filing Adjustments: Should there be a need to update your tax details due to changes like a new job, a second income, or a change in marital status, a tax accountant can ensure that these changes are reflected in your tax code. They can submit the necessary adjustment requests to HMRC to update your tax code accurately.
Advisory and Planning Services
Tax Planning Advice: Beyond obtaining the tax code notice, a personal tax accountant provides valuable advice on tax planning. They can suggest how to utilize allowances and reliefs effectively to optimize your tax situation, potentially leading to substantial savings.
Educational Guidance: An accountant can also educate you on the components of your tax code, what each part means, and how different factors like allowances, deductions, and additional incomes affect it. This knowledge empowers you to understand future tax code notices better and manage your tax affairs more proactively.
Leveraging Professional Expertise
Professional Representation: In complex cases, such as when dealing with multiple income streams or expatriate tax issues, having a tax accountant act as your representative can be invaluable. They provide a professional level of scrutiny and negotiation that can protect your financial interests.
Ongoing Monitoring and Updates: Tax accountants can monitor your tax code adjustments over time, ensuring they remain accurate as your circumstances evolve. This ongoing review prevents future tax issues and ensures compliance.
A personal tax accountant is a crucial ally in managing your tax affairs in the UK. Their expertise not only helps in obtaining your tax code notice but also ensures that it accurately reflects your financial situation, thus avoiding overpayments or underpayments of tax. By leveraging their skills in communication, negotiation, and strategic planning, you can navigate the complexities of the tax system with confidence, ensuring peace of mind and financial efficiency. Engaging a personal tax accountant is a wise investment for anyone looking to optimize their tax responsibilities and understand the nuances of their tax code.
FAQs
Q1: Can someone change their tax code if it’s incorrect?
A1: Absolutely, it’s a common mix-up, but here’s the fix. If your tax code is wrong – say, it’s BR instead of 1257L due to an unreported job change – contact HMRC via their online Personal Tax Account or by calling 0300 200 3300. Provide your National Insurance number and evidence like payslips or a P45. For instance, a client in Bristol corrected her 0T code after starting a second job, saving £150 monthly. HMRC typically updates it within a few weeks, and any overpaid tax can be refunded.
Q2: What should someone do if they haven’t received a Tax Code Notice?
A2: It’s frustrating when that P2 notice doesn’t arrive. First, check your Personal Tax Account online, as HMRC often posts digital copies there. If it’s missing, call HMRC or request a paper copy to your registered address. A shop owner in Birmingham I advised missed his notice because he’d moved; a quick call sorted it in 10 days. Ensure your address is updated with HMRC to avoid future delays.
Q3: How does a tax code affect someone with a side hustle?
A3: Side hustles can complicate things, as I’ve seen with clients in the gig economy. Your main job usually gets the full £12,570 allowance (1257L), while side income, like Uber earnings, might be coded BR (20% tax on all). Report all income to HMRC to split your allowance correctly. A Leeds freelancer I helped was overtaxed £800 because her Etsy sales weren’t reported, but adjusting her code fixed it.
Q4: Can someone get a Tax Code Notice for a previous tax year?
A4: Yes, you can access past notices, which is handy for checking old tax calculations. Log into your Personal Tax Account to view or download notices for the last four years. If unavailable, contact HMRC with your National Insurance number. A retiree in Cornwall I advised retrieved a 2023/24 notice to confirm a pension tax error, leading to a £600 refund.
Q5: What happens if someone’s tax code includes a K prefix?
A5: A K code means deductions exceed your allowance, often due to underpaid tax or benefits like a company car. For example, K300 adds £3,000 to your taxable income. Check your notice for details and confirm with HMRC if it seems off. A client in Manchester had a K200 code from an old tax debt; we clarified it with HMRC, spreading repayments to ease the burden.
Q6: How does someone check their tax code if they live in Scotland?
A6: Scottish taxpayers, take note – your code starts with an S, reflecting Scotland’s unique tax bands (e.g., 19% starter rate). Verify it via your Personal Tax Account or payslip. A Glasgow teacher I worked with missed her S1257L code, assuming English rates, and overpaid £400. Cross-check with Scotland’s 2025/26 rates to ensure accuracy.
Q7: What should someone do if their employer uses the wrong tax code?
A7: It’s a headache, but fixable. If your employer applies an outdated or incorrect code, provide them with your latest P2 notice or P45. Then, notify HMRC directly to update their records. A client in Cardiff had an employer using a BR code instead of 1257L, costing her £200 monthly; a quick HMRC call sorted it.
Q8: Can a self-employed person have a tax code?
A8: In my experience with clients, self-employed folks usually only have a tax code for PAYE income, like a part-time job. Your business profits are taxed via Self Assessment, not a code. For example, a London contractor with a £15,000 side job had a 625L code for it, while his freelance income was reported separately. Check your notice to ensure PAYE codes align with your Self Assessment.
Q9: How does someone know if their tax code accounts for marriage allowance?
A9: The Marriage Allowance can boost your allowance by £1,260, coded as 1383L if you receive it. Check your P2 notice for this adjustment. A couple in Sheffield I advised missed claiming it, losing £252 in tax savings. Apply via your Personal Tax Account if eligible (one partner earns below £12,570, the other below £50,270).
Q10: What if someone’s tax code includes a high-income child benefit charge?
A10: If you earn over £50,000 and claim Child Benefit, your code may include a deduction for the charge (e.g., 1% of benefit per £100 over £50,000). Verify this on your notice. A client earning £55,000 had a £1,331 charge coded in, which we adjusted by opting out of Child Benefit to simplify her tax.
Q11: How can someone verify their tax code for a company car benefit?
A11: Company cars add taxable value to your code, often reducing your allowance (e.g., K100 for a £1,000 benefit). Your P2 notice lists the car’s value and tax impact. A Birmingham manager I helped was overtaxed £500 because his car’s value was misreported; we corrected it with HMRC. Check your employer’s car details against the notice.
Q12: What should someone do if they’re taxed on a pension?
A12: Pensions can muddy the waters. Your state or private pension may have a BR code if HMRC thinks it’s secondary income. Verify via your Personal Tax Account. A Devon pensioner I advised was overtaxed £600 because her private pension wasn’t allocated any allowance; reallocating it fixed the issue.
Q13: Can someone appeal a tax code decision by HMRC?
A13: Yes, you can challenge HMRC’s code if it’s wrong. Contact them with evidence (payslips, P60s) via phone or online. A client in Leeds appealed a 0T code applied after a job gap, proving his income qualified for 1257L, saving £1,000. HMRC usually reviews within 30 days.
Q14: How does someone check their tax code for a new job?
A14: Starting a new job? Your employer uses your P45 or a starter checklist to set your code. Check your first payslip and P2 notice to confirm it’s 1257L (or adjusted for other incomes). A new hire in Liverpool I helped was on W1, overtaxing her £300 until we submitted her P45.
Q15: What if someone’s tax code changes mid-year?
A15: Mid-year changes happen due to life events like marriage or new jobs. Your P2 notice explains why. A client’s code shifted from 1257L to 1383L after claiming Marriage Allowance, saving £252. Verify changes in your Personal Tax Account and query HMRC if unclear.
Q16: How does someone handle a tax code for multiple jobs?
A16: Multiple jobs can lead to overtaxing if HMRC splits your allowance incorrectly. Check your notice to see how the £12,570 is divided. A Manchester nurse with two jobs had her allowance only on one, costing £400; we rebalanced it via HMRC. Report all jobs in your Personal Tax Account.
Q17: Can someone get a tax code notice if they’re not working?
A17: If you’re unemployed but receiving taxable income (e.g., pensions, benefits), you’ll get a notice. Check your Personal Tax Account or contact HMRC. A jobless client in Glasgow received a notice for taxable Jobseeker’s Allowance, ensuring correct deductions.
Q18: What should a business owner do if their tax code affects their director’s salary?
A18: Director’s salaries are taxed via PAYE, so your code matters. Ensure it reflects your full allowance unless offset by other income. A café owner in Bristol I advised had a BR code on her £10,000 salary, overtaxing her £2,000; we corrected it to 1257L. Align with your Self Assessment for profits.
Q19: How does someone check if their tax code includes student loan repayments?
A19: Student loan deductions are separate but can affect your code’s application. Your notice shows if repayments are factored in. A graduate in London I helped noticed her 1257L code didn’t account for Plan 2 repayments; we updated HMRC, adjusting her deductions correctly.
Q20: What if someone’s tax code is affected by working remotely abroad?
A20: Remote work abroad can complicate codes if you’re UK-tax resident. HMRC may adjust your allowance based on foreign income. A client working remotely in Spain for a UK firm had a K100 code for foreign earnings; we clarified her residency status, restoring 1257L. Consult HMRC for double taxation agreements.
About the Author
Mr. Maz Zaheer, FCA, AFA, MAAT, MBA, is the CEO and Chief Accountant of MTA and Total Tax Accountants—two of the UK’s leading tax advisory firms. With over 15 years of hands-on experience in UK taxation, Maz is a seasoned expert in advising individuals, SMEs, and corporations on complex tax matters. A Fellow Chartered Accountant and a prolific tax writer, he is widely respected for simplifying intricate tax concepts through his popular articles. His professional insights empower UK taxpayers to navigate their financial obligations with clarity and confidence.
Disclaimer:
The information provided in our articles is for general informational purposes only and is not intended as professional advice. While we strive to keep the information up-to-date and correct, MTA makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained in the articles for any purpose. Any reliance you place on such information is therefore strictly at your own risk. The graphs may also not be 100% reliable.
We encourage all readers to consult with a qualified professional before making any decisions based on the information provided. The tax and accounting rules in the UK are subject to change and can vary depending on individual circumstances. Therefore, MTA cannot be held liable for any errors, omissions, or inaccuracies published. The firm is not responsible for any losses, injuries, or damages arising from the display or use of this information.
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