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What should I do if my tax code is incorrect? - A freelancer on the phone to HMRC

What should I do if my tax code is incorrect?

tax

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    If your tax code is incorrect, you could be paying more tax than you need to or even underpaying tax.

    If you move between employments, and your entitlement to benefits in kind has changed, or you have paid the wrong amount of tax in previous years, there may be a delay as HMRC updates its records. Consequently, you may be overpaying or underpaying tax, and you'll need to work out the tax that you owe. If you'd like to understand more about how your own code is calculated, take a look at our tax codes explained guide. You could also compare this with our personal income tax estimator for further clarity.

    What should I do if I believe my tax code is incorrect?

    If you think you are paying the wrong amount of tax, you should contact HMRC on 0300 200 3300. Have as much information to hand as possible to support your view that your tax code is wrong (such as your P11D and P45 from previous employers).

    Your accountant won’t be able to call on your behalf as HMRC will not accept communication through an agent on this matter.

    What do I need?

    You’ll need your National Insurance number and your company PAYE scheme reference.

    Once you've got the right tax code, you'll be able to use our tax calculators to confirm that you're paying the correct amount.

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    Need more help?

    All of the above comments are for your information only. We always recommend speaking to an accountant for a more in-depth analysis of your circumstances.

    If you don't have an accountant or are looking to switch, give our friendly team a call on 01273 257165 or arrange a free consultation.

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