HMRC outlines eleven situations that can trigger a tax code change
HMRC has published a list of eleven circumstances that can cause a UK tax code to be altered, warning that many people may be overpaying tax.
Her Majesty’s Revenue and Customs explains that a tax code is the reference used by employers and pension providers to calculate Income Tax deductions, and individuals may hold more than one code at once. Changes can arise from eleven listed triggers, including marriage allowance claims, high-income child-benefit charges, emergency codes for new jobs, adjustments to State Pension amounts, taxable state benefits, and repayments such as the Winter Fuel Payment.
Taxpayers can view their current and past codes online, through the HMRC app, on payslips or via a Tax Code Notice letter, and can opt for email alerts when a code changes. The agency normally notifies users of the reason behind any update. Money Saving Expert urges people who have recently started work, taken on additional jobs or pensions, received company benefits, or changed employment to check their code quickly to avoid unnecessary tax overpayments.
Why it matters
Incorrect tax codes can lead to unnecessary tax payments, affecting household finances.
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