Under PAYE, HMRC issue tax codes to employers telling them how much tax to deduct from their employees’ pay. A tax code is therefore a crucial piece of information, as being on the wrong code can lead to employees paying too much or too little tax.
To avoid this, it’s important that employees remain on top of what their tax code means and keep an eye out for any changes. However, the string of letters and numbers that make up the code are not always easy to decipher.
If an employee struggles to understand their tax code, or thinks it is wrong, their first port of call is normally their employer. However, employers can’t actually check or change tax codes themselves. Employees need to ask HMRC to do this.
We’ve produced a short video to help employees understand what their tax code means and what to do if they think their code isn’t correct. Please share this video with your employees – not only could it help them, but it could also reduce the number of requests you receive for help with tax codes.
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