How to check if you’re on the right tax code - and what to do if you’re not

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18.08.2020 - 14:29

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dailyrecord.co.uk

dailyrecord.co.uk:

Tax codes are a hot topic at the moment and most workers across the UK take it for granted that they are on the right one and paying the right amount of tax, but are they?

A tax code is used by an employer or pension provider in order to work out how much Income Tax to take from the individual's pay or pension.

Currently, 1250L is the tax code which is used for most people who have one job or pension, but not many understand what the numbers of letters mean.

The numbers in an employee’s tax code show how much tax-free income they get in that tax year, this is known as your Personal Allowance.

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