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Changing the tax code

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We’re an accounting business that has been established for several decades. Our team has a thorough understanding of every element of the profession. The reputation we’ve developed is one based on first rate services and fantastic advice. When it comes to tax returns in Stratford, there is no one who can help you quite like we can.

At some stage, you will need to change your tax code. Moreover, it could prove necessary to check to see that it’s up to date and correct. Even if you believe yours is right, you could be under or overpaying HMRC considerably. This topic isn’t as complicated as you might believe though. To help, we are going to discuss some of the most important details here.

What is a tax code?

Tax returns StratfordPension providers and employers utilise your tax code to determine the income tax they take from your pension or salary. Anyone with a private pension or those who are employed have such a code.

Examples of previous codes include 1150L and 1185L. Initially, this can all seem like a random bunch of numbers and letters. In truth, it is a key piece of information that influences your finances.

Employers determine how much tax they should take from your pension or wages. This is before they hit your account. HMRC tells them what code to use to collect the proper amount of tax. As a result, it is a critical part of the process.

If there is an error in your tax code, there can be inaccurate payments made to HMRC. The wrong payments could be in the hundreds of pounds, so you need to ensure you have the right code. Make sure it is there when you do tax returns in Stratford.

Checking your code

If you need to check your code, there is a simple way of doing so online. The HMRC website has a Check your Income Tax page.

It is essential that you ensure it’s correct. If it’s not, you could have to file a reimbursement claim. You could even find money you didn’t expect to have to pay.

Why does it change?

We’ll end by discussing why your tax code might have changed. The most common reason is if your tax-free income goes down or up according to HMRC. This might be because they stop a benefit or you start gaining taxable benefit, such as a company car. Moving jobs or marriage can also cause a code change.

You can get an emergency tax code for a second job. These are usually temporary, but it is still critical to check.

Ask us for help with tax returns in Stratford

At Brian G Lonis & Co, we strive to offer clients high value, cost efficient solutions to their issues. Tax returns aren’t the easiest things to navigate. With our experience and talent behind you however, you will be able to overcome all your problems. We will ensure crucial details like your tax code are correct.

So, feel free to get in touch with us if you need our help with tax returns in Stratford. We can advise you at any point, including if you become the focus of an investigation.