Money Saving Expert Martin Lewis says anyone who receives a payslip should check it immediately, as you could lose thousands of pounds if you don't. Speaking on The Martin Lewis Money Show Live on ITV1 he urged people to check the tax code on their payslip before a deadline passes in April.
If you miss the deadline you won't be able to reclaim the money and some people could lose thousands of pounds. Martin said: "Urgently check if yours is correct.
"Your tax code is a number that tells your employer or your pension provider what tax to deduct from your income. 1257L is a common one. The way to work this out is add a zero to the end, so that becomes £12,570 which is your tax-free allowance. As for the L, that's complicated. I think from memory, that means 'lower'.
"My uncle, Tax Tony, who is a just retiring tax accountant, is that right?" He said: "L is for unmarried people as in a lower increase in an allowance each year.
"H is for married people to take into account a wife's income as additional allowance." According to YorkshireLive Martin then added: "You can see it runs in the family can't you!
"So, you need to check yours. Millions are wrong and it is your responsibility. It is not HMRC's responsibility, it is not your employer's responsibility.
"If it's wrong and you underpaid, they'll come and they'll want the money and that is a nightmare for people. But if it's wrong and you overpaid then you're due the money back, but the deadline for the 2018-19 year is coming fast. This could be big money."
