Latest news with #TAXINGTIMES
Scottish Sun
03-06-2025
- Business
- Scottish Sun
HMRC warning to check codes on letters as workers are owed £700 each – check if you're affected
Find out how to check if you could be eligible TAXING TIMES HMRC warning to check codes on letters as workers are owed £700 each – check if you're affected BRITS are being urged to check their tax codes immediately as thousands could be due a £700 refund from HMRC. 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 Thousands could be owed £700 from HMRC Credit: Alamy 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. Clampdown on tax dodgers is confirmed by Rachel Reeves in bid to fill spending black hole 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.
Scottish Sun
24-05-2025
- Business
- Scottish Sun
Rachel Reeves looking at ‘lots of little tax rises' in Budget as she is under pressure to lift 2 child benefit cap
Senior Labour MP Meg Hillier said that lifting the cap is the most efficient way to lift kids out of child poverty TAXING TIMES Rachel Reeves looking at 'lots of little tax rises' in Budget as she is under pressure to lift 2 child benefit cap Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) RACHEL Reeves is looking at 'lots of little tax rises' in the Budget as she is under massive pressure to find billions to lift the 2 child benefit cap. Treasury officials have been drawing up a suite of possible levies which the Chancellor could whack on Brits in her fiscal blueprint later this year. Sign up for Scottish Sun newsletter Sign up 2 Senior Labour MP Meg Hillier became the latest to back lifting the cap One Whitehall official said options included creating another council tax ban - known as a mansion tax. Although Treasury ministers have previously played down the prospect of this policy. A Treasury source said: 'They are looking at lots of little tax rises.' Ms Reeves is under huge pressure from Labour figures - including Gordon Brown - to lift the 2 child benefit cap, which limits the full benefits parents can get to two children. Sir Keir Starmer is looking at lifting the cap after a revolt from his MPs - but it would cost around £3 billion a year. With Treasury coffers running low, No11 is expected to have to raise taxes to pay for the benefit. Senior Labour MP Meg Hillier, chairwoman of the powerful Treasury select committee, became the latest to come out backing lifting the cap. She told the BBC that it's the most efficient way to lift kids out of child poverty. She said: 'The only way we will lift children out of poverty in those households is to get that money to them. 'No Labour MP wants child poverty to go up by the end of the parliament.' Millions hit by benefit cuts as Rachel Reeves warns 'if you can work, you should work!' in bid to fix 'broken system' Dame Meg has researched the topic and believes that scrapping the two-child limit in April 2025 would immediately pull 350,000 children out of poverty and stop another 150,000 being drawn into poverty over this parliament. A Treasury spokesman said: 'The best way to strengthen public finances is by growing the economy – which is our focus. 'Changes to tax and spend policy are not the only ways of doing this, as seen with our planning reforms which are expected to grow the economy by £6.8bn and cut borrowing by £3.4bn. 'We are committed to keeping taxes for working people as low as possible which is why at last Autumn's Budget we protected working people's payslips and kept our promise to not raise the basic, higher or additional rates of Income Tax, employee National Insurance or VAT.'
