The start of the new financial year on April 6 brings many changes for people in work or claiming benefits and those in retirement. HM Revenue and Customs (HMRC) has started issuing emails to people advising them to check their newly issued tax code for 2023/24.
Your tax code is the number that tells your employer or your pension provider how much tax to deduct from your income. The most common one is 1257L, which is based on the Personal Tax Allowance of £12,570 - this is the amount you can earn before you need to pay tax.
However, PAYE Income Tax records have recently changed, which means the amount of tax you pay may change. If your tax code is wrong, you could be paying more tax than you need to and be due a refund, but similarly, you could also be on a lower tax rate and owe HMRC money.
