MARTIN Lewis has urged taxpayers to check their codes as they could be owed thousands.
The Martin Lewis Money Show, returned for the first time this year airing the seventh episode of its 12th series.
The martin Lewis Money Show aired for the first time in 2023 on Jan 10
During the show, the MoneySavingExpert founder encouraged audience members to make sure they’re on the right tax code after a viewer wrote in to say his wife had been refunded thousands.
The happy viewer said: “I want to thank you for reminding us to check our income tax codes.
“It turns out my wife has been on the wrong tax code for 4 years and she just got a check for £2,585.”
Martin warned people that it is only you and you alone who is responsible for checking you’re on the right code.
“If you’re an employee or you’re getting a pension you will be sent a tax code.”
He added: “The standard one is 1257L now what you have to understand, even if you don’t know what the number means – it is your legal responsibility to ensure that that is correct.
“It is not your employers, it is not the tax office, its office,” he said.
The consumer champion said that if it’s wrong, then you might be owed money which will be great following an expensive Christmas and winter.
However, you could also be paying too little and would therefore owe money – you must pay this to the tax office unfortunately.
But Martin did say that by paying more now will mean you won’t be paying even more back later down the line.
He explained that there are useful tools to help check if your tax code is correct:
“It is an important piece if many of you are going through your finances cause its January and that’s what people do.
“Get online and check your tax code is right – you might be owed money or it might stop you having to pay even more back in the future.”
Also on his show, Martin told viewers to check if they’re owed the government’s £900 cost of living payment.
He said: “We know what help is coming in the next tax year. If you’re on means-tested benefits and you got the £650 this year it will be £900 in the next tax year.
“This includes pension credit. There are under a million state pensioners on low incomes entitled to pension credit but not getting it.
“They will miss out on the £900 they should be getting.
“If you’re a low-income pensioner or no someone that is, call the pension credit helpline to see if you’re entitled.”
How do I find my tax code and how can I change it?
You can find your tax code in a number of different ways, including:
- on a “Tax Code Notice” letter from HMRC if you get one
- on your payslip (this might be online or in paper form)
- on the HMRC app
- by checking your tax code for the current year online on your personal tax account
HMRC should, normally, update your tax code when your income changes. They should receive this information from your employer.
But sometimes HMRC might not have the correct information and you may be given the wrong tax code.
Of course, HMRC won’t know if you have the wrong tax code so will continue deducting what it thinks is the correct amount from your pay.
So it’s up to you to be proactive and get in touch with them if you think it’s wrong.
As Martin said, you can use tools to check whether yours is incorrect such as one on the government’s website.
You can use the tool to update your employment details and tell HMRC about any change in income that might have affected your tax code.
If you have paid too much or too little tax, HMRC will send you either a tax calculation letter, also known as a P800, or a Simple Assessment letter.
If your P800 letter says you’re due a refund, it will tell you how to claim it.
You might be able to request the refund online, but you’ll need your Government Gateway user ID and password.
You can create one if you don’t have one, but you’ll need your National Insurance (NI) number and two of the following to hand:
- a valid UK passport
- a driving licence issued by the DVLA (or DVA in Northern Ireland)
- a payslip from the last three months or a P60 from your employer for the last tax year
- details of your tax credit claim
- details from your Self Assessment tax return (in the last two years)
- information held on your credit record if you have one (such as loans, credit cards or mortgages)
You’ll receive a Simple Assessment letter if you owe income tax that can’t be automatically taken out of your income, you owe HMRC £3,000 or more or you have to pay tax on the state pension.
If you think the calculation on the letter is wrong, you should call or write to HMRC within 60 days.
You can call on 0300 200 3300 or send a letter to Pay As You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS, United Kingdom.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk
