Latest news with #TaxCodeNotice
Scottish Sun
5 days ago
- 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
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
