HMRC issues overpayment warning that low earners could face 25 per cent tax rate
manchestereveningnews.co.ukHM Revenue and (HMRC) has issued an alert about a common situation that can lead to taxpayers getting the incorrect tax code and overpaying tax.
The concern was brought to light when a taxpayer reached out, perplexed by the substantial deduction from their wage. They queried: "I got paid £384.78 after taxes it was £511 before.
Why is it deducted that much is it emergency tax?" In response, HMRC inquired about which tax code had been used for the payment by the employer.
The taxpayer indicated they were on tax code 0T but believed they should be on 1257L. Typically this is the tax code for individuals if they have one job with one employer, meaning they have the full personal allowance and are exempt from income tax on the first £12,570 earned each year.
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