Martin Lewis has warned all UK workers to check they’re not losing out on thousands of pounds - by simply seeing if their tax code is correct. His MoneySavingExpert website instructed workers that that the small error could have major consequences for their finances.
Your tax code is made up of letters and numbers, and is used to represent how much you can earn before you will start paying your tax, the Mirror reports. The personalised tax code is then what determines how much tax you should be paying monthly by HMRC.
But Martin Lewis’ website MSE has claimed that millions of people could have their tax code wrong - and it could be costing them thousands. If you’re on the wrong tax code, money owed to you in tax might not have come through.
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April is the month which starts the tax year, so there could not be a better time to make sure everything is in check. The MoneySavingExpert website stated: “Your tax code is a series of letters and numbers (for example, 1257L) which tells your employer or pension provider what tax to deduct. However, millions of codes could be wrong."
There is also another change to look out for on your payslip - the increase in National Insurance payments. National Insurance has just increased from 12 per cent to 13 per cent - or 1.25 percentage points.
But alongside it, the threshold which determines when you pay National Insurance has also gone up, from £9,568 to £9,880. In July, this is due to rise again by an even bigger jump. In July, the threshold will sit at £12,570, meaning more low income workers won’t have to pay the tax.
