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Scottish Sun
19-05-2025
- Business
- Scottish Sun
Millions of workers urged to check key code on special payment slips arriving in DAYS – check if you're overpaying
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) MILLIONS of workers have been urged to check a key code on a special payment slip revealing if they're overpaying tax. The warning has been issued to employees who should receive their P60s before the end of the month. 1 The wrong tax code on your P60 means you could be overpaying tax to HMRC P60s are issued to workers at the end of every tax year with the final deadline for bosses to send them May 31. They are sent out either electronically or in paper form. However, one key detail on the P60 could tell you you're paying the wrong amount of tax - your "final tax code". If it turns out you are on the wrong code, it means you could be overpaying tax and are owed money from HMRC. Bear in mind though, you may also be underpaying tax and have to pay HMRC any shortfall. Sarah Coles, personal finance expert at Hargreaves Lansdown, said: "It isn't always easy to get to grips with your P60, but the thing to look for is the final tax code. "If it's wrong, you could end up over-paying or under-paying your tax – either of which is a pain in the neck." Your tax code could be wrong for any number of reasons, including if you have multiple jobs and your employer doesn't know your personal allowance has been used up from earnings elsewhere. You may also be on the wrong code if you've changed jobs and your employer hasn't received the right documentation from a previous employer. Or, someone in the HR department might simply have made a clerical error meaning you're on the wrong code. How to challenge your council tax band How to check your tax code A tax code is normally a five-digit mixture of letters and numbers. The most common tax code for the current tax year is 1257L. This tax code is used for most people with one job and no untaxed income, unpaid tax or taxable benefits (like a company car). You can check your tax code on your online personal tax account, via payslips, or on the HMRC app. You can also, if you've received one, check your code on a "Tax Code Notice" letter from HMRC. You'll need your Government Gateway ID and password to log in to your online personal tax account. If you don't have this you can use your National Insurance number or postcode and two of the following: a valid UK passport a UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland) a payslip from the last three months or a P60 from your employer for the last tax year details of a tax credit claim if you have made one details from a Self Assessment tax return (in the last two years) if you made one information held on your credit record if you have one (such as loans, credit cards or mortgages) You can also use free tax code calculator which can give you a steer as to whether you're on the right one. How to report a wrong tax code If, after checking, you think you're on the wrong tax code, you can contact HMRC to tell them via phone on 0300 200 3300. This is usually the quickest way to get a response. Or, you can send a letter to the following address: Pay as You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS, United Kingdom. If you are on the wrong tax code and have been paying too much, HMRC will change it so you pay the correct amount moving forwards. They should also reimburse any tax you've already overpaid. If you've been underpaying tax, you will usually have to pay the money back over 12 months. But, only if you are earning enough over the personal tax allowance (£12,570) to cover the underpayment and owe less than £3,000. HMRC might get in touch with you to tell you you're owed a tax rebate too - they'll do this via a P800 letter or a simple assessment letter in the post. But again, a P800 might tell you if you've not paid enough tax and have to pay it back. A P800 letter will tell you if you can claim online through the Government's website, in which case you'll need your Government Gateway ID and password. If you claim the money online it will be sent to your bank account within five days. You can also claim your refund through the HMRC app. If your P800 letter states you will be paid your tax rebate via cheque in the post, you should receive it within 14 days of the date on your letter. If you're owed tax from more than one year, you'll get a single cheque for the entire amount. There are time limits in place to reclaim any overpaid tax, which is currently four years from the end of the tax year in which you are trying to claim. So, if you're in any doubt you've overpaid tax, you should contact HMRC as early as possible. What your tax code means Your tax code is a combination of letters and numbers. The number will normally dictate the level of your tax-free allowance. So if your allowance is £11,000 the first four digits of your code will be 1100. The letters have different meanings - here is a guide: L - You're entitled to the standard tax-free personal allowance - You're entitled to the standard tax-free personal allowance M - Marriage Allowance: you've received a transfer of 10 per cent of your partner's personal allowance (£1,260) - Marriage Allowance: you've received a transfer of 10 per cent of your partner's personal allowance (£1,260) N - Marriage Allowance: you've transferred 10 per cent of your personal allowance to your partner - Marriage Allowance: you've transferred 10 per cent of your personal allowance to your partner S - Your income or pension is taxed using the rates in Scotland - Your income or pension is taxed using the rates in Scotland T - Your tax code includes other calculations to work out your personal allowance, for example, it's been reduced because your estimated annual income is more than £100,000 - Your tax code includes other calculations to work out your personal allowance, for example, it's been reduced because your estimated annual income is more than £100,000 0T - Your personal allowance (which is currently £12,570) has been used up, or you've started a new job and your employer doesn't have the details they need to give you a tax code - Your personal allowance (which is currently £12,570) has been used up, or you've started a new job and your employer doesn't have the details they need to give you a tax code BR - All your income from this job or pension is taxed at the basic rate (usually used if you've got more than one job or pension) - All your income from this job or pension is taxed at the basic rate (usually used if you've got more than one job or pension) D0 - All your income from this job or pension is taxed at the higher rate (usually used if you've got more than one job or pension) - All your income from this job or pension is taxed at the higher rate (usually used if you've got more than one job or pension) D1 - All your income from this job or pension is taxed at the additional rate (usually used if you've got more than one job or pension) - All your income from this job or pension is taxed at the additional rate (usually used if you've got more than one job or pension) NT - You're not paying any tax on this income - You're not paying any tax on this income Tax codes starting with K mean you have income that isn't being taxed another way and it's worth more than your tax-free allowance If your tax code begins with 'W1', 'M1' or 'X' you've been placed on an emergency tax code and may need to update your details. If you change jobs, take on an additional role or have another change in circumstances it is also worth checking your details and making sure you are on the correct code. It could be that HMRC has not received information about your change of circumstances and therefore will not update anything. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Scottish Sun
03-05-2025
- Business
- Scottish Sun
HMRC issues urgent working from home tax warning for thousands of employees
HMRC has issued a new warning to millions of people who work from home that a five minute check could help them avoid a costly repayment bill. Workers should double check they are eligible for tax relief when working from home before they make a claim to avoid being hit with a bill. Advertisement 1 HMRC has issued a warning to thousands of people who work from home Many remote workers can legitimately claim tax relief for essential household costs such as heating and business-related phone calls when working from home. They can either claim on a flat rate of £6 a week or the exact amount of additional expenses they have incurred. But HMRC has said that strict eligibility rules mean individuals are responsible for repaying any money if they incorrectly claim the relief. This is also the case if they use a company that promises to claim the tax relief on their behalf. Advertisement In a fresh alert on social media HMRC warned: 'Don't get caught out by ads promising quick tax refunds for working from home. 'Always check if you are eligible before making a claim. Avoid agent fees by claiming directly with HMRC.' Who can claim tax relief? You may be able to claim tax relief for additional household costs if you have to work from home for all or part of the week. But it is only available in specific circumstances, such as if an employer requires an employee to work remotely, or if there is no office available. Advertisement Choosing to work from home does not qualify you for tax relief. You are also not eligible if your employer has an office but you cannot use it sometimes because it is full. How to challenge your council tax band Meanwhile, if you claim for the exact additional expenses then they must relate directly to work costs, such as business calls or a proportion of your electricity bill. You cannot claim for general household costs such as rent or broadband. Advertisement You can either claim tax relief on £6 a week or the exact amount you have spent. You will get the relief based on the rate at which you pay tax. How do I check my tax code? YOU can check your tax code on your personal tax account online, on any payslips or on the HMRC app. To log in, visit If you have one, you can also check it on a "Tax Code Notice" letter from HMRC. Bear in mind that you might need your Government Gateway ID and password to hand to log in. But if you don't have this you can use your National Insurance number or postcode and two of the following: A valid UK passport A UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland) A payslip from the last three months or a P60 from your employer for the last tax year Details of a tax credit claim if you have made one Details from a self assessment tax return (in the last two years) if you made one Information held on your credit record if you have one (such as loans, credit cards or mortgages) For example, if you pay the 20% basic rate of tax and claim relief on £6 a week, you would get £1.20 a week in tax relief. Andy Wood, international tax adviser at Tax Natives, explains: 'The criteria for claiming this relief changed following the COVID-19 pandemic. Advertisement 'Many people who were eligible during the pandemic may no longer qualify today, so it's important not to assume continued entitlement without checking." He adds that even if they use an agent or tax refund company to submit a claim, they are still personally responsible for the information they provide. Andy explains: 'Any overpayments identified by HMRC would need to be repaid by the individual, not the agent.' How can I check if I am eligible and claim? You can check if you are eligible for tax relief online using the tool on the HMRC website. Advertisement You should do this before you submit a claim to avoid any issues. When you claim, you must send in evidence that you have to work from home if you are claiming £6 a week for the 2022/23 tax year. If you are claiming the exact amount you have spent then you will need to send evidence such as a copy of your receipt or bills. If you complete a Self Assessment tax return then you must claim the relief through your tax return instead. Advertisement You can claim tax relief for the current tax year and the previous four if you have not yet done so. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
The Sun
03-05-2025
- Business
- The Sun
HMRC issues urgent working from home tax warning for thousands of employees
HMRC has issued a new warning to millions of people who work from home that a five minute check could help them avoid a costly repayment bill. Workers should double check they are eligible for tax relief when working from home before they make a claim to avoid being hit with a bill. 1 Many remote workers can legitimately claim tax relief for essential household costs such as heating and business-related phone calls when working from home. They can either claim on a flat rate of £6 a week or the exact amount of additional expenses they have incurred. But HMRC has said that strict eligibility rules mean individuals are responsible for repaying any money if they incorrectly claim the relief. This is also the case if they use a company that promises to claim the tax relief on their behalf. In a fresh alert on social media HMRC warned: 'Don't get caught out by ads promising quick tax refunds for working from home. 'Always check if you are eligible before making a claim. Avoid agent fees by claiming directly with HMRC.' Who can claim tax relief? You may be able to claim tax relief for additional household costs if you have to work from home for all or part of the week. But it is only available in specific circumstances, such as if an employer requires an employee to work remotely, or if there is no office available. Choosing to work from home does not qualify you for tax relief. You are also not eligible if your employer has an office but you cannot use it sometimes because it is full. How to challenge your council tax band Meanwhile, if you claim for the exact additional expenses then they must relate directly to work costs, such as business calls or a proportion of your electricity bill. You cannot claim for general household costs such as rent or broadband. You can either claim tax relief on £6 a week or the exact amount you have spent. You will get the relief based on the rate at which you pay tax. How do I check my tax code? YOU can check your tax code on your personal tax account online, on any payslips or on the HMRC app. To log in, visit If you have one, you can also check it on a "Tax Code Notice" letter from HMRC. Bear in mind that you might need your Government Gateway ID and password to hand to log in. But if you don't have this you can use your National Insurance number or postcode and two of the following: A valid UK passport A UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland) A payslip from the last three months or a P60 from your employer for the last tax year Details of a tax credit claim if you have made one Details from a self assessment tax return (in the last two years) if you made one Information held on your credit record if you have one (such as loans, credit cards or mortgages) For example, if you pay the 20% basic rate of tax and claim relief on £6 a week, you would get £1.20 a week in tax relief. Andy Wood, international tax adviser at Tax Natives, explains: 'The criteria for claiming this relief changed following the COVID-19 pandemic. 'Many people who were eligible during the pandemic may no longer qualify today, so it's important not to assume continued entitlement without checking." He adds that even if they use an agent or tax refund company to submit a claim, they are still personally responsible for the information they provide. Andy explains: 'Any overpayments identified by HMRC would need to be repaid by the individual, not the agent.' How can I check if I am eligible and claim? You can check if you are eligible for tax relief online using the tool on the HMRC website. You should do this before you submit a claim to avoid any issues. When you claim, you must send in evidence that you have to work from home if you are claiming £6 a week for the 2022/23 tax year. If you are claiming the exact amount you have spent then you will need to send evidence such as a copy of your receipt or bills. If you complete a Self Assessment tax return then you must claim the relief through your tax return instead. You can claim tax relief for the current tax year and the previous four if you have not yet done so. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@
