What effect does an incorrect Tax Code have on my payslip?

Question

Since April 08 I have had tax code 548L on my payslips when it should have been 549L, as written to me by HM Revenue & Customs.

I am guessing I have been charged more tax that I should have, what do I do to resolve this issue?

Answer 1

If you are a 20% tax payer, you will overpay £2.00 in the tax year. As the tax tables are always in the taxpayer's favour, overall you will probably be a few pence underpaid if computation made.

When tax codes go up in September, ask tax office to send form P6 to employer, rather than him being asked to uprate. Your new code will probably be 609L.

You could also ask employer where he gets code 548L from. His form P6 should agree with your form P2 (notice of coding).

Answer 2

no as the code you should have been paying is 549 and you have been paying 548 which is less you will owe tax

Answer 3

Contact Inland Revenue and ask them how you go about getting your money back and they will advise whether you need to talk to your employers or not, usually they correct these mistakes themselves and will refund you automatically, if it is a large amount you may get it in a few separate payments, you will be paid back via your wages. Contact them anyway as it might hurry things along a bit.

Answer 4

Is it really worth fussing over such a small difference? It will all be resolved at year-end. Even as a top-rate taxpayer the figures would be 40% of 10 quid. Hardly a fortune whichever way.

Answer 5

go into your local tax office and tell them, it will be worked out by the end of the financial year so look at it as a saving!

Answer 6

Take it up with your employers.They will sort it for you.

Answer 7

If you feel you may have been over taxed you can apply for a tax rebate, check out this site have used it myself and got a result.

www.taxback.co.uk/