With a new tax year around the corner, it’s the perfect time to remind your employees to check their tax codes. HMRC have started sending out updated PAYE coding notices for the 2024/25 tax year, but some employees may not understand what they mean.  

To help employees get to grips with their tax codes, HMRC have launched an interactive tool called check what your tax code means. No login details are needed, users simply need to enter which country they live in, some basic details relating to their tax code and an estimate of their earnings. They will then be provided with a breakdown of what the letters and numbers in their tax code mean, and an estimate of how much tax they’re likely to pay on their PAYE income.  

Anyone who hasn’t had a tax code notification for the coming tax year can download the HMRC App, which allows taxpayers to access their tax code and a basic breakdown of what it means. This requires a user account to be set up as a one-off process, after which the App can be accessed using a PIN, or biometric identification (eg face or fingerprint recognition) if supported by the user’s device. A more detailed breakdown of the tax code is available via the Personal Tax Account, which uses the same account details as the App.  

Employees whose tax codes contain wrong or outdated information can use the HMRC App to make certain corrections, such as adding new employments or other sources of income. More complex changes, for instance to benefits in kind or allowable expenses have to be made through the Personal Tax Account, or by calling HMRC. 

This article reflects the position at the date of publication shown above. If you are reading this at a later date you are advised to check that that position has not changed in the time since.     

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