HMRC warning to check codes on letters as workers are owed £700 each – check if you're affected
It comes as the May 31 deadline has passed for employers to issue P60 forms – a crucial document that confirms how much tax you've paid in the last financial year.
1
But tax experts are warning that many workers could be on the wrong tax code without even knowing it, potentially costing them hundreds of pounds.
One in three Brits has been on the wrong tax code at some point, with average overpayments hitting a hefty £689, according to research by Canada Life.
The blunder means HMRC could be sitting on billions in overpaid tax and the only way to get it back is to check your details and flag it.
Taxpayers should double check the 'final tax code' on their P60 that's the string of letters and numbers near the top of the form.
Codes like "BR", "D0", or "D1" should raise a red flag.
These mean you may have been taxed at a flat rate with no tax-free allowance.
Anyone who stayed with the same employer up to April 5 should have already received their P60, either in the post or digitally.
And while it may be tempting to toss it aside, it's an important piece of paperwork.
Not only is it used to claim tax rebates, it's also essential for applying for tax credits, benefits, loans, or even a mortgage.
If you think your code is wrong, or if something doesn't look right on your payslip, it's time to act.
How to check your tax code
You can check your current tax code by logging into your personal tax account online, using the HMRC app, or digging out your latest payslip.
You may also have received a Tax Code Notice from HMRC in the post, so it's worth checking any recent letters too.
If the numbers don't add up, contact HMRC directly.
You can call them on 0300 200 3300 or write to: Pay As You Earn and Self Assessment, HMRC, BX9 1AS.
Those who've overpaid could see a refund land in their bank within five days once their claim is processed or receive a cheque in the post within two weeks.
But it's not always good news, some may find they underpaid tax and owe HMRC money.
If that's the case, most will be asked to repay it gradually over 12 months.
If you're owed money, you may also receive a P800 letter or a simple assessment telling you how much you're due and how to claim it.
There's a four-year limit on claiming back overpaid tax, so if you think you've been overcharged, don't delay.
Whether you're a full-time employee, working multiple jobs, or have just switched roles, it's worth double checking your code because a five-minute check could leave you hundreds better off.
The Sun has approached HMRC for comment.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Times
13 minutes ago
- Times
Self-employed contractors make comeback after budget tax rise
There has been a marked increase in companies looking for self-employed contractors since the government changes to employers' national insurance contributions (NICs) back in the spring. There are 326,068 jobs for contract workers listed on Adzuna, the job search engine, a fifth more than at the beginning of April. James Neave, head of data science at Adzuna, said employers had been 'increasingly favouring contract workers' since the government raised the amount of national insurance paid by employers on April 6. For a worker earning the average UK salary of £33,000, employers are having to pay an extra £900 a year in NICs. The government thinks the increases will raise £25 billion a year. Economists have said the national insurance increase is already having a larger effect on the jobs market than expected. Recent labour market statistics show the biggest impact on employment in leisure and hospitality, industries that employ millions of people. The economy has shed a quarter of a million jobs in the past 12 months and unemployment has risen to a four-year high of 4.7 per cent. Adzuna's data demonstrates the shift in the labour market. While companies are looking for more contractors, there has been a 9 per cent drop in permanent roles listed on its website since April. Back then, there were 573,167 permanent vacancies; now there are 519,767. • Businesses to cut staff and raise prices after national insurance rise Anecdotal evidence suggests some companies are pivoting to contractors because they typically receive no employee benefits such as healthcare and, importantly, employers do not have to pay NICs on their behalf. Neave accepted that companies' growing preference for temporary workers could reflect a 'knee-jerk reaction to rising employment costs', although he added that there were likely to be other factors at play. Companies focusing more on hiring contractors rather than permanent staff has been a feature of the jobs market for the past two and a half years. Neave said it was usually quicker to bring in a freelancer on a fixed-term contract while there has also been an element of 'try before you commit', he said. The big recruiters have blamed the enduring geopolitical and economic volatility for bosses not wanting to commit to permanent increases in headcount. With Donald Trump's flip-flopping on tariffs, the outlook for many companies has only become more uncertain in recent weeks. • Trump doubles India's tariffs to 50% in response to Russian oil row '[Temporary hires offer] a little bit of flexibility where someone's not so confident, so they'll bring in a temp for six months and see how it goes,' James Hilton, chief financial officer at recruiter Hays, said recently. On the other side of the equation, permanent employees are reluctant to move jobs for fear of being last in and first out if their new company starts to struggle. That is likely to be another reason why companies have started to look for more contractors. Neave said that business owners needed to be mindful that contractors were 'typically [on] higher rates' and can lead to 'lower levels of control and knowledge retention in the business'.
Telegraph
38 minutes ago
- Telegraph
There are questions Beijing must answer about its Embassy plans
The saga of the new Chinese Embassy in London has reached its climax. Having bought the Royal Mint, a huge and historic site of more than five acres opposite the Tower of London, for £255m in 2018, Beijing is now developing it. Much of this building would be used for normal cultural and diplomatic purposes. But the plans include a vast basement with no obvious function. More concerningly, details of these plans have been redacted in Beijing's application. There are justifiable fears that the basement could become a high-tech centre for espionage, surveillance and monitoring of Chinese nationals. The basement might even include facilities where pro-democracy activists from Hong Kong could be interrogated. Lawyers for the Chinese are already exploring legal loopholes to extradite its opponents and rewards are offered to those who turn them in. The decision on granting planning permission now rests with the Housing Secretary. Angela Rayner is, of course, also the Deputy Prime Minister. As such she will be more concerned about global than local issues. Britain's economic dependence on China means that it seems most unlikely that Ms Rayner will refuse planning permission, apart from minor modifications. But it is welcome that she has at least asked for an explanation as to why the plans have been redacted. This is, however, an issue that transcends normal diplomatic relations. We cannot allow the largest embassy in Europe to be erected in such a strategic location in London without proper parliamentary and press scrutiny. Ms Rayner must elicit more information from the Chinese about what would go on inside their proposed basement. Until the Beijing authorities are more forthcoming about their intentions, the public is entitled to presume that they are sinister.
The Sun
38 minutes ago
- The Sun
Lottery results and numbers: Lotto and Thunderball draw tonight, August 6, 2025
THE NATIONAL Lottery results are in and it's time to find out who has won a life-changing amount of money tonight (August 6, 2025). Could tonight's £5.3 million jackpot see you handing in your notice, jetting off to the Bahamas or driving a new Porsche off a garage forecourt? 3 3 You can find out by checking your ticket against tonight's numbers below. Good luck! Tonight's National Lottery Lotto winning numbers are: 05, 09, 17, 31, 47, 58 and the Bonus Ball is 35. Tonight's National Lottery Thunderball winning numbers are: 02, 03, 19, 27, 38 and the Thunderball is 11. The first National Lottery draw was held on November 19 1994 when seven winners shared a jackpot of £5,874,778. The largest amount ever to be won by a single ticket holder was £42million, won in 1996. Gareth Bull, a 49-year-old builder, won £41million in November, 2020 and ended up knocking down his bungalow to make way for a luxury manor house with a pool. TOP 5 BIGGEST LOTTERY WINS ACROSS THE WORLD £1.308 billion (Powerball) on January 13 2016 in the US, for which three winning tickets were sold, remains history's biggest lottery prize £1.267 billion (Mega Million) a winner from South Carolina took their time to come forward to claim their prize in March 2019 not long before the April deadline £633.76 million (Powerball draw) from a winner from Wisconsin £625.76 million (Powerball) Mavis L. Wanczyk of Chicopee, Massachusetts claimed the jackpot in August 2017 £575.53 million (Powerball) A lucky pair of winners scooped the jackpot in Iowa and New York in October 2018 Sue Davies, 64, bought a lottery ticket to celebrate ending five months of shielding during the pandemic — and won £500,000. Sandra Devine, 36, accidentally won £300k - she intended to buy her usual £100 National Lottery Scratchcard, but came home with a much bigger prize. The biggest jackpot ever to be up for grabs was £66million in January last year, which was won by two lucky ticket holders. Another winner, Karl managed to bag £11million aged just 23 in 1996. The odds of winning the lottery are estimated to be about one in 14million - BUT you've got to be in it to win it. 3
