Millions can get £689 back from HMRC now and beat weeks-long wait
UK workers can claim £689 a cash boost and avoid waiting weeks for a letter through the post, it has emerged. UK taxpayers up and down the country could be missing out on hundreds of pounds of cash - and need to check the tax code to see if they are eligible.
A third of adults have been on the wrong tax code at some point, with the average worker paying £689 more than they need, according to a survey by Canada Life. Andrew Tully, technical director at Canada Life commented: “Understanding your tax code is vital to ensure you’re paying the right amount of income tax.
"Those who are not on the right code may find themselves out of pocket. If it’s wrong, you may end up contributing more or less than you’re supposed to. And although overpaying means you should get a rebate - if and when it’s spotted - underpaying means you may have to pay HMRC a lump sum to make up the short-fall."
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Mr Tullly went on and explained in a warning to taxpayers nationwide: "If you are in doubt about your tax code, there are a variety of online resources to help you check, including salary and pension withdrawal calculators.
“If you think you are on the wrong tax code you can call HMRC directly. It’s worth keeping in mind there are time limits to reclaim overpaid income tax, which is four years from the end of the tax year in which you are trying to claim.
"There are very limited exceptions to this, for example if HMRC has made an official error, so if you are in any doubt, the earlier you contact HMRC, the better.” HMRC sends out letters to inform workers on PAYE of their tax code in March and April.
But you can check your tax code on your payslip. If you're on the wrong code you can contact HMRC on 0300 200 3300.